Question 1

Tactical controls involve the fundamental control arrangements of the organization,those with which its members have to live day to day.

Accepted Answer

A) True 
 B)False

Question 2

The degree of stretch in a budget refers to the ________.

Accepted Answer

A)  resilience of the budget 
B)  tightness of the budget 
C)  acceptability of the budget 
D)  standardization of the budget 
A)  resilience of the budget 
B)  tightness of the budget 
C)  acceptability of the budget 
D)  standardization of the budget

Question 3

Sales of photocopy machines manufactured by Xenon Ltd.have declined substantially,resulting in lower revenues.Most members of the core executive group blame unrealistic goals for this outcome.Which of the following is the strongest counterargument for this?

Accepted Answer

A)  More revenue is being earned through service contracts than sales. 
B)  Competitors of Xenon are also facing a similar problem. 
C)  Cost of labor has increased slightly in the past year. 
D)  Broad-based participation was used in setting the standards. 
A)  More revenue is being earned through service contracts than sales. 
B)  Competitors of Xenon are also facing a similar problem. 
C)  Cost of labor has increased slightly in the past year. 
D)  Broad-based participation was used in setting the standards.

Question 4

High-performing employees in an organization can be retained by ________.

Accepted Answer

A)  close monitoring 
B)  increased recognition 
C)  increased workload 
D)  increased feedback 
A)  close monitoring 
B)  increased recognition 
C)  increased workload 
D)  increased feedback

Question 5

Distinguish between return on investment and break-even point.

Accepted Answer

The data used for the most important fin

Question 6

________ is a type of operational control that evaluates the conversion of inputs to outputs while it is happening.

Accepted Answer

A)  Precontrol 
B)  Postcontrol 
C)  Concurrent control 
D)  Strategic control 
A)  Precontrol 
B)  Postcontrol 
C)  Concurrent control 
D)  Strategic control

Question 7

The financial ratio of liquidity indicates how well the organization can meet its long-term financial obligations.

Accepted Answer

A) True 
 B)False

Question 8

Tactical control focuses on ________.

Accepted Answer

A)  implementing strategy 
B)  regulating activities 
C)  managing methods 
D)  planning policies 
A)  implementing strategy 
B)  regulating activities 
C)  managing methods 
D)  planning policies

Question 9

Achievable budget standards are regarded as desirable because ________.

Accepted Answer

A)  they focus only on long-term actions at the expense of short-term objectives 
B)  they are not too challenging for the company 
C)  they reduce the motivation to manipulate data 
D)  they reduce uncertainty and keep employee morale under check 
A)  they focus only on long-term actions at the expense of short-term objectives 
B)  they are not too challenging for the company 
C)  they reduce the motivation to manipulate data 
D)  they reduce uncertainty and keep employee morale under check

Question 10

The ________ of an organization is probably the most widespread tactical control system that the typical employee encounters.

Accepted Answer

A)  operating budget 
B)  supervisory structure 
C)  human resource system 
D)  quantitative forecasting system 
A)  operating budget 
B)  supervisory structure 
C)  human resource system 
D)  quantitative forecasting system

Question 11

The first step of the control process in an organizational setting is ________.

Accepted Answer

A)  comparing performance to standard 
B)  measuring performance 
C)  establishing standards 
D)  evaluating performance 
A)  comparing performance to standard 
B)  measuring performance 
C)  establishing standards 
D)  evaluating performance

Question 12

Which of the following situations would be least likely to justify high control costs?

Accepted Answer

A)  nuclear power plants 
B)  military weapons units 
C)  customer service call centers 
D)  federal air traffic control agencies 
A)  nuclear power plants 
B)  military weapons units 
C)  customer service call centers 
D)  federal air traffic control agencies

Question 13

Control responsibility that is too broad can lead to ________.

Accepted Answer

A)  bottlenecks 
B)  decision delays 
C)  work overload 
D)  omissions 
A)  bottlenecks 
B)  decision delays 
C)  work overload 
D)  omissions

Question 14

Research on goal setting related to the budgetary process suggests that the ideal budget is one that is not challenging and is easily attainable.

Accepted Answer

A) True 
 B)False

Question 15

________ is usually the most difficult managerial task in the control process.

Accepted Answer

A)  Comparing performance to standards 
B)  Establishing standards 
C)  Evaluating and taking corrective action 
D)  Measuring performance 
A)  Comparing performance to standards 
B)  Establishing standards 
C)  Evaluating and taking corrective action 
D)  Measuring performance

Question 16

Which of the following is an approach to determine the focus of control?

Accepted Answer

A)  balanced scorecard 
B)  break-even point 
C)  leverage 
D)  return on equity 
A)  balanced scorecard 
B)  break-even point 
C)  leverage 
D)  return on equity

Question 17

Planning and control do not have to be linked together in organizations.

Accepted Answer

A) True 
 B)False

Question 18

As the complexity of a task increases and its assessment standards become more abstract,there will be a higher potential that performance measurement will cause confusion.

Accepted Answer

A) True 
 B)False

Question 19

The external environment is the least significant factor affecting whether a strategic control system can be set up.

Accepted Answer

A) True 
 B)False

Question 20

At Meridian Inc.,employees are given general goals and basic budgets rather than policy manuals.Furthermore,it is expected that they will be strongly dedicated to the goals of the organization.Which control approach does Meridian Inc.use?

Accepted Answer

A)  bureaucratic 
B)  commitment 
C)  operational 
D)  self-reliant 
A)  bureaucratic 
B)  commitment 
C)  operational 
D)  self-reliant

Tactical controls involve the fundamental control arrangements of the organization,those with which its members have to live day to day.

The degree of stretch in a budget refers to the ________.

Sales of photocopy machines manufactured by Xenon Ltd.have declined substantially,resulting in lower revenues.Most members of the core executive group blame unrealistic goals for this outcome.Which of the following is the strongest counterargument for this?

High-performing employees in an organization can be retained by ________.

Distinguish between return on investment and break-even point.

________ is a type of operational control that evaluates the conversion of inputs to outputs while it is happening.

The financial ratio of liquidity indicates how well the organization can meet its long-term financial obligations.

Tactical control focuses on ________.

Achievable budget standards are regarded as desirable because ________.

The ________ of an organization is probably the most widespread tactical control system that the typical employee encounters.

The first step of the control process in an organizational setting is ________.

Which of the following situations would be least likely to justify high control costs?

Control responsibility that is too broad can lead to ________.

Research on goal setting related to the budgetary process suggests that the ideal budget is one that is not challenging and is easily attainable.

________ is usually the most difficult managerial task in the control process.

Which of the following is an approach to determine the focus of control?

Planning and control do not have to be linked together in organizations.

As the complexity of a task increases and its assessment standards become more abstract,there will be a higher potential that performance measurement will cause confusion.

The external environment is the least significant factor affecting whether a strategic control system can be set up.

At Meridian Inc.,employees are given general goals and basic budgets rather than policy manuals.Furthermore,it is expected that they will be strongly dedicated to the goals of the organization.Which control approach does Meridian Inc.use?

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Planning

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Organizational Change and Development

Filters

Exam 14: Control

Tactical controls involve the fundamental control arrangements of the organization,those with which its members have to live day to day.

The degree of stretch in a budget refers to the ________.

Sales of photocopy machines manufactured by Xenon Ltd.have declined substantially,resulting in lower revenues.Most members of the core executive group blame unrealistic goals for this outcome.Which of the following is the strongest counterargument for this?

High-performing employees in an organization can be retained by ________.

Distinguish between return on investment and break-even point.

________ is a type of operational control that evaluates the conversion of inputs to outputs while it is happening.

The financial ratio of liquidity indicates how well the organization can meet its long-term financial obligations.

Tactical control focuses on ________.

Achievable budget standards are regarded as desirable because ________.

The ________ of an organization is probably the most widespread tactical control system that the typical employee encounters.

The first step of the control process in an organizational setting is ________.

Which of the following situations would be least likely to justify high control costs?

Control responsibility that is too broad can lead to ________.

Research on goal setting related to the budgetary process suggests that the ideal budget is one that is not challenging and is easily attainable.

________ is usually the most difficult managerial task in the control process.

Which of the following is an approach to determine the focus of control?

Planning and control do not have to be linked together in organizations.

As the complexity of a task increases and its assessment standards become more abstract,there will be a higher potential that performance measurement will cause confusion.

The external environment is the least significant factor affecting whether a strategic control system can be set up.

At Meridian Inc.,employees are given general goals and basic budgets rather than policy manuals.Furthermore,it is expected that they will be strongly dedicated to the goals of the organization.Which control approach does Meridian Inc.use?

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Planning

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Organizational Change and Development

Filters