Question 1

A feedback system is influenced by its own _____.

Accepted Answer

A)  past behaviors 
B)  before-the-fact steps 
C)  future inputs 
D)  future activities 
E)  inputs per hour 
A)  past behaviors 
B)  before-the-fact steps 
C)  future inputs 
D)  future activities 
E)  inputs per hour

Question 2

Describe the economic considerations that need to be kept in mind while deciding on the amount of control to be exercised in an organization.

Accepted Answer

A good quality control system requires a

Question 3

While establishing standards for control,objectives are never directly used as standards.

Accepted Answer

A) True 
 B)False

Question 4

Objective realization requires constant monitoring to ensure that _____.

Accepted Answer

A)  enough progress is being made toward established objectives 
B)  the organization is operating within its established boundaries of constraint 
C)  the day-to-day policies and rules are given more importance as compared to the long-term goals 
D)  the stability of an operation is maintained 
E)  control is practiced after problems occur 
A)  enough progress is being made toward established objectives 
B)  the organization is operating within its established boundaries of constraint 
C)  the day-to-day policies and rules are given more importance as compared to the long-term goals 
D)  the stability of an operation is maintained 
E)  control is practiced after problems occur

Question 5

Problems resulting from resistance to controls arise when people adhere to the prescribed behavior.

Accepted Answer

A) True 
 B)False

Question 6

Variable costs include direct labor and materials.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the reason behind designing zero-base budgeting as a control device?

Accepted Answer

A)  To hide inefficiencies 
B)  To stop basing the present year's budget on the previous year's budget 
C)  To increase the rigidity in the budget 
D)  To distinguish between cash budgets and production budgets 
E)  To measure output 
A)  To hide inefficiencies 
B)  To stop basing the present year's budget on the previous year's budget 
C)  To increase the rigidity in the budget 
D)  To distinguish between cash budgets and production budgets 
E)  To measure output

Question 8

What is the function of leverage ratios?

Accepted Answer

A)  They indicate an organization's operational efficiency. 
B)  They indicate how well an organization is being managed. 
C)  They measure the magnitude of owners' and creditors' claims on the organization. 
D)  They evaluate how effectively an organization is managing some of its basic operations. 
E)  They judge how well an organization will be able to meet its short-term financial goals. 
A)  They indicate an organization's operational efficiency. 
B)  They indicate how well an organization is being managed. 
C)  They measure the magnitude of owners' and creditors' claims on the organization. 
D)  They evaluate how effectively an organization is managing some of its basic operations. 
E)  They judge how well an organization will be able to meet its short-term financial goals.

Question 9

Organizations operating in an industry with rapid change and high competition should have a rigid budget.

Accepted Answer

A) True 
 B)False

Question 10

What is the difference between quick ratio and the debt-to-equity ratio?

Accepted Answer

Quick ratio measures short-ter

Question 11

Which of the following is a disadvantage of budgets?

Accepted Answer

A)  They are not useful for planning and control. 
B)  They are inflexible. 
C)  They cannot be used in industries with rapid change and high competition. 
D)  They decrease the visibility of power in the organization. 
E)  They have no relation to customer satisfaction. 
A)  They are not useful for planning and control. 
B)  They are inflexible. 
C)  They cannot be used in industries with rapid change and high competition. 
D)  They decrease the visibility of power in the organization. 
E)  They have no relation to customer satisfaction.

Question 12

Control is accomplished by comparing actual performance to predetermined standards and correcting any deviations from the standard.

Accepted Answer

A) True 
 B)False

Question 13

_____ system is a measurement and control system that is based on the idea that financial measures alone do not adequately indicate how an organization is performing.

Accepted Answer

A)  Balanced scorecard 
B)  Electronic monitoring 
C)  Audit 
D)  Break-even chart 
E)  Accounting information 
A)  Balanced scorecard 
B)  Electronic monitoring 
C)  Audit 
D)  Break-even chart 
E)  Accounting information

Question 14

Rigid rules have the unintended effect of _____.

Accepted Answer

A)  showing minimum acceptable behavior 
B)  creating an environment in which people do not know what is expected of them 
C)  decreasing visibility power 
D)  reducing interpersonal tension 
E)  increasing performance 
A)  showing minimum acceptable behavior 
B)  creating an environment in which people do not know what is expected of them 
C)  decreasing visibility power 
D)  reducing interpersonal tension 
E)  increasing performance

Question 15

Most people prefer working in an environment where there is no control.

Accepted Answer

A) True 
 B)False

Question 16

A feedback loop can exist without much human interaction in the _____ controls area of the control pyramid.

Accepted Answer

A)  foolproof 
B)  supervisory 
C)  automatic 
D)  informational 
E)  operator 
A)  foolproof 
B)  supervisory 
C)  automatic 
D)  informational 
E)  operator

Question 17

When financial information is used for control purposes,_____ indicate how well the organization is being managed.

Accepted Answer

A)  liquidity ratios 
B)  profitability ratios 
C)  debt ratios 
D)  leverage ratios 
E)  activity ratios 
A)  liquidity ratios 
B)  profitability ratios 
C)  debt ratios 
D)  leverage ratios 
E)  activity ratios

Question 18

Analytical reports present only the facts.

Accepted Answer

A) True 
 B)False

Question 19

In the control pyramid,_____ controls deal with repetitive acts and require little thought.

Accepted Answer

A)  foolproof 
B)  automatic 
C)  operator 
D)  supervisory 
E)  informational 
A)  foolproof 
B)  automatic 
C)  operator 
D)  supervisory 
E)  informational

Question 20

Which of the following is a consequence of an absence of control?

Accepted Answer

A)  It increases the visibility of power. 
B)  It creates an environment in which people do not know what is expected of them. 
C)  It restricts the flexibility and innovation required to be competitive. 
D)  It shows employees the minimum acceptable behavior permitted in the organization. 
E)  It stifles the entrepreneurial spirit of employees. 
A)  It increases the visibility of power. 
B)  It creates an environment in which people do not know what is expected of them. 
C)  It restricts the flexibility and innovation required to be competitive. 
D)  It shows employees the minimum acceptable behavior permitted in the organization. 
E)  It stifles the entrepreneurial spirit of employees.

A feedback system is influenced by its own _____.

Describe the economic considerations that need to be kept in mind while deciding on the amount of control to be exercised in an organization.

While establishing standards for control,objectives are never directly used as standards.

Objective realization requires constant monitoring to ensure that _____.

Problems resulting from resistance to controls arise when people adhere to the prescribed behavior.

Variable costs include direct labor and materials.

Which of the following is the reason behind designing zero-base budgeting as a control device?

What is the function of leverage ratios?

Organizations operating in an industry with rapid change and high competition should have a rigid budget.

What is the difference between quick ratio and the debt-to-equity ratio?

Which of the following is a disadvantage of budgets?

Control is accomplished by comparing actual performance to predetermined standards and correcting any deviations from the standard.

_____ system is a measurement and control system that is based on the idea that financial measures alone do not adequately indicate how an organization is performing.

Rigid rules have the unintended effect of _____.

Most people prefer working in an environment where there is no control.

A feedback loop can exist without much human interaction in the _____ controls area of the control pyramid.

When financial information is used for control purposes,_____ indicate how well the organization is being managed.

Analytical reports present only the facts.

In the control pyramid,_____ controls deal with repetitive acts and require little thought.

Which of the following is a consequence of an absence of control?

Management in a Diverse Workplace

The Management Movement

Developing Communication Skills

Decision-Making Skills

Ethical, social, and Legal Responsibilities of Management

International Business

The Basics of Planning and Strategic Management

Organizing Work

Organizational Structure

Understanding Work Groups and Teams

Staffing

Employee Training and Development

Motivating Employees

Developing Leadership Skills

Managing Conflict and Stress

Managing Change and Culture

Appraising and Rewarding Performance

Operations Management and Planning

Operations Control

Filters

Exam 17: Management Control

A feedback system is influenced by its own _____.

Describe the economic considerations that need to be kept in mind while deciding on the amount of control to be exercised in an organization.

While establishing standards for control,objectives are never directly used as standards.

Objective realization requires constant monitoring to ensure that _____.

Problems resulting from resistance to controls arise when people adhere to the prescribed behavior.

Variable costs include direct labor and materials.

Which of the following is the reason behind designing zero-base budgeting as a control device?

What is the function of leverage ratios?

Organizations operating in an industry with rapid change and high competition should have a rigid budget.

What is the difference between quick ratio and the debt-to-equity ratio?

Which of the following is a disadvantage of budgets?

Control is accomplished by comparing actual performance to predetermined standards and correcting any deviations from the standard.

_____ system is a measurement and control system that is based on the idea that financial measures alone do not adequately indicate how an organization is performing.

Rigid rules have the unintended effect of _____.

Most people prefer working in an environment where there is no control.

A feedback loop can exist without much human interaction in the _____ controls area of the control pyramid.

When financial information is used for control purposes,_____ indicate how well the organization is being managed.

Analytical reports present only the facts.

In the control pyramid,_____ controls deal with repetitive acts and require little thought.

Which of the following is a consequence of an absence of control?

Management in a Diverse Workplace

The Management Movement

Developing Communication Skills

Decision-Making Skills

Ethical, social, and Legal Responsibilities of Management

International Business

The Basics of Planning and Strategic Management

Organizing Work

Organizational Structure

Understanding Work Groups and Teams

Staffing

Employee Training and Development

Motivating Employees

Developing Leadership Skills

Managing Conflict and Stress

Managing Change and Culture

Appraising and Rewarding Performance

Operations Management and Planning

Operations Control

Filters