Question 1

Which of the following is a drawback of the clan approach of organizational control?

Accepted Answer

A)  Control is imposed on the members of the organization. 
B)  Emphasis on detecting deviance is troubling for employees. 
C)  Considerable time and managerial effort goes behind the control. 
D)  Individual responsibility becomes a source of stress. 
A)  Control is imposed on the members of the organization. 
B)  Emphasis on detecting deviance is troubling for employees. 
C)  Considerable time and managerial effort goes behind the control. 
D)  Individual responsibility becomes a source of stress.

Question 2

Companies that have rejected budgets require employees to measure themselves against the performance of competitors against internal peer groups.

Accepted Answer

A) True 
 B)False

Question 3

In the context of the characteristics determining the quality of information indispensible for effective control,identify the correct statement.

Accepted Answer

A)  All data collected for control purposes are equally useful in managerial operations and decisions. 
B)  Control actions can be based on inaccurate information when valid information is difficult to collect. 
C)  For effective control, information must arrive on time to those who can take action and make any required changes. 
D)  Effective control systems find accurate data useful even if they arrive very late. 
A)  All data collected for control purposes are equally useful in managerial operations and decisions. 
B)  Control actions can be based on inaccurate information when valid information is difficult to collect. 
C)  For effective control, information must arrive on time to those who can take action and make any required changes. 
D)  Effective control systems find accurate data useful even if they arrive very late.

Question 4

The first step in the control process is dependent on the existence of ________.

Accepted Answer

A)  a favorable cost-benefit ratio 
B)  the department of human resources 
C)  the absence of well-defined performance yardsticks 
D)  as much specificity as possible so that standards are not vague 
A)  a favorable cost-benefit ratio 
B)  the department of human resources 
C)  the absence of well-defined performance yardsticks 
D)  as much specificity as possible so that standards are not vague

Question 5

In which of the following cases is the need for change the least?

Accepted Answer

A)  when the difference between performance and standard is negative 
B)  No difference exists between performance and standard. 
C)  when the difference between performance and standard is positive 
D)  There is no well-defined standard to measure performance by. 
A)  when the difference between performance and standard is negative 
B)  No difference exists between performance and standard. 
C)  when the difference between performance and standard is positive 
D)  There is no well-defined standard to measure performance by.

Question 6

The ________ is where the selling price of a unit of a product minus its variable costs exceeds the fixed costs for that unit.

Accepted Answer

A)  current ratio 
B)  return on investment 
C)  inventory turnover ratio 
D)  break-even point 
A)  current ratio 
B)  return on investment 
C)  inventory turnover ratio 
D)  break-even point

Question 7

Which of the following represents the narrowest scope of control for a bank branch manager?

Accepted Answer

A)  ensuring that there is an adequate ratio of deposits relative to loans 
B)  ensuring proper credit checking before a loan is granted to any individual or organization 
C)  ensuring that the bank gets enough publicity to attract new clientele 
D)  ensuring that there is a fair ratio of human tellers to automated tellers present 
A)  ensuring that there is an adequate ratio of deposits relative to loans 
B)  ensuring proper credit checking before a loan is granted to any individual or organization 
C)  ensuring that the bank gets enough publicity to attract new clientele 
D)  ensuring that there is a fair ratio of human tellers to automated tellers present

Question 8

Which of the following is an outcome of too much organizational control?

Accepted Answer

A)  lowered motivation 
B)  exposure to risks 
C)  low quality operations 
D)  ineffective utilization of resources 
A)  lowered motivation 
B)  exposure to risks 
C)  low quality operations 
D)  ineffective utilization of resources

Question 9

Upon discovering stronger-than-expected sales of its product,a manufacturer of baby food finds that senior citizens who wear dentures are buying the meals meant for toddlers.Consequently,the firm targets a new line of packaged meals to senior citizens.This case suggests managers should always ________.

Accepted Answer

A)  investigate positive differences between performance and standards 
B)  collapse similar, small market segments into one larger segment 
C)  design each product for maximum adjustability 
D)  market every product to multiple customer segments 
A)  investigate positive differences between performance and standards 
B)  collapse similar, small market segments into one larger segment 
C)  design each product for maximum adjustability 
D)  market every product to multiple customer segments

Question 10

Regardless of cost,performance measurement should always be comprehensive.

Accepted Answer

A) True 
 B)False

Question 11

The contemporary approach to operational control involves shifting the responsibility for control away from operations personnel toward separate evaluators at the end of the production process.

Accepted Answer

A) True 
 B)False

Question 12

Some employers use software to track the key strokes of their employees involved in data entry.The software reflects the overall productivity of the employees by recording their pace of work.This software is an example of ________.

Accepted Answer

A)  precontrol of operations 
B)  postcontrol of operations 
C)  concurrent control of operations 
D)  proactive control of operations 
A)  precontrol of operations 
B)  postcontrol of operations 
C)  concurrent control of operations 
D)  proactive control of operations

Question 13

Identify a challenge of formulating strategic controls.

Accepted Answer

A particular challenge in formulating st

Question 14

Extensive control measures almost always deflate employee morale and lower profitability,irrespective of the situation.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a critical decision in the context of the environmental conditions in which large companies operate?

Accepted Answer

A)  how flexible to make the budget 
B)  how centralized or decentralized should the control systems be 
C)  how much to invest in precontrol systems for operations 
D)  how to fund the budget for the training and development department 
A)  how flexible to make the budget 
B)  how centralized or decentralized should the control systems be 
C)  how much to invest in precontrol systems for operations 
D)  how to fund the budget for the training and development department

Question 16

Sales that do not meet their forecast may mean that production should be increased or the product line should be extended.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following assessments carried out by the manager of a chain of used-car dealerships has the largest scope?

Accepted Answer

A)  deciding upon suitable advertising for the next fiscal year 
B)  deciding whether to start another dealership in an area with a growing population 
C)  deciding how much inventory to carry in each dealership and the whole company 
D)  deciding on the appropriate number of sales staff for each dealership 
A)  deciding upon suitable advertising for the next fiscal year 
B)  deciding whether to start another dealership in an area with a growing population 
C)  deciding how much inventory to carry in each dealership and the whole company 
D)  deciding on the appropriate number of sales staff for each dealership

Question 18

Which of the following is a drawback of the BEP analysis?

Accepted Answer

A)  It can discourage future profitable activities if they initially don't seem profitable. 
B)  It can provide wrong indices of profit and loss and confuse managers. 
C)  It can only be conducted after production has been completed and inventory costs have been made. 
D)  It detracts from cost reduction and profit maximization. 
A)  It can discourage future profitable activities if they initially don't seem profitable. 
B)  It can provide wrong indices of profit and loss and confuse managers. 
C)  It can only be conducted after production has been completed and inventory costs have been made. 
D)  It detracts from cost reduction and profit maximization.

Question 19

South West Trading controls the raw materials used to make its products at the point of origin.In addition,it uses the services of United Parcel Service (UPS)to combine orders from various factories into one container for shipment.What type of control system is being used by South West Trading?

Accepted Answer

A)  precontrol of operations 
B)  strategic control of operations 
C)  financial control of operations 
D)  concurrent control of operations 
A)  precontrol of operations 
B)  strategic control of operations 
C)  financial control of operations 
D)  concurrent control of operations

Question 20

The ________ analysis allows managers to gauge the amount of a product that must be sold to cover a firm's fixed and variable costs.This analysis is difficult because ________.

Accepted Answer

A)  return on equity; it is difficult to determine the total cost of inventory 
B)  break-even point; it is difficult to project variable costs accurately 
C)  efficiency; it is difficult to project variable costs accurately 
D)  activity; it is difficult to determine the total cost of inventory 
A)  return on equity; it is difficult to determine the total cost of inventory 
B)  break-even point; it is difficult to project variable costs accurately 
C)  efficiency; it is difficult to project variable costs accurately 
D)  activity; it is difficult to determine the total cost of inventory

Which of the following is a drawback of the clan approach of organizational control?

Companies that have rejected budgets require employees to measure themselves against the performance of competitors against internal peer groups.

In the context of the characteristics determining the quality of information indispensible for effective control,identify the correct statement.

The first step in the control process is dependent on the existence of ________.

In which of the following cases is the need for change the least?

The ________ is where the selling price of a unit of a product minus its variable costs exceeds the fixed costs for that unit.

Which of the following represents the narrowest scope of control for a bank branch manager?

Which of the following is an outcome of too much organizational control?

Regardless of cost,performance measurement should always be comprehensive.

The contemporary approach to operational control involves shifting the responsibility for control away from operations personnel toward separate evaluators at the end of the production process.

Some employers use software to track the key strokes of their employees involved in data entry.The software reflects the overall productivity of the employees by recording their pace of work.This software is an example of ________.

Identify a challenge of formulating strategic controls.

Extensive control measures almost always deflate employee morale and lower profitability,irrespective of the situation.

Which of the following is a critical decision in the context of the environmental conditions in which large companies operate?

Sales that do not meet their forecast may mean that production should be increased or the product line should be extended.

Which of the following assessments carried out by the manager of a chain of used-car dealerships has the largest scope?

Which of the following is a drawback of the BEP analysis?

South West Trading controls the raw materials used to make its products at the point of origin.In addition,it uses the services of United Parcel Service (UPS)to combine orders from various factories into one container for shipment.What type of control system is being used by South West Trading?

The analysis allows managers to gauge the amount of a product that must be sold to cover a firm's fixed and variable costs.This analysis is difficult because .

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

Which of the following is a drawback of the clan approach of organizational control?

Companies that have rejected budgets require employees to measure themselves against the performance of competitors against internal peer groups.

In the context of the characteristics determining the quality of information indispensible for effective control,identify the correct statement.

The first step in the control process is dependent on the existence of ________.

In which of the following cases is the need for change the least?

The ________ is where the selling price of a unit of a product minus its variable costs exceeds the fixed costs for that unit.

Which of the following represents the narrowest scope of control for a bank branch manager?

Which of the following is an outcome of too much organizational control?

Regardless of cost,performance measurement should always be comprehensive.

The contemporary approach to operational control involves shifting the responsibility for control away from operations personnel toward separate evaluators at the end of the production process.

Some employers use software to track the key strokes of their employees involved in data entry.The software reflects the overall productivity of the employees by recording their pace of work.This software is an example of ________.

Identify a challenge of formulating strategic controls.

Extensive control measures almost always deflate employee morale and lower profitability,irrespective of the situation.

Which of the following is a critical decision in the context of the environmental conditions in which large companies operate?

Sales that do not meet their forecast may mean that production should be increased or the product line should be extended.

Which of the following assessments carried out by the manager of a chain of used-car dealerships has the largest scope?

Which of the following is a drawback of the BEP analysis?

South West Trading controls the raw materials used to make its products at the point of origin.In addition,it uses the services of United Parcel Service (UPS)to combine orders from various factories into one container for shipment.What type of control system is being used by South West Trading?

The ________ analysis allows managers to gauge the amount of a product that must be sold to cover a firm's fixed and variable costs.This analysis is difficult because ________.

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

The analysis allows managers to gauge the amount of a product that must be sold to cover a firm's fixed and variable costs.This analysis is difficult because .