Question 1

When financial information is used for control purposes,_____ indicate how well an organization will be able to meet its short-term financial obligation.

Accepted Answer

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

Question 2

_____ attempt to evaluate the overall management practices and policies of the organization.

Accepted Answer

A)  Break-even charts 
B)  Electronic monitors 
C)  Balanced scorecards 
D)  Financial ratio analyses 
E)  Management audits 
A)  Break-even charts 
B)  Electronic monitors 
C)  Balanced scorecards 
D)  Financial ratio analyses 
E)  Management audits

Question 3

Higher-level managers get too involved in details when controls are placed far down in the organization.

Accepted Answer

A) True 
 B)False

Question 4

Reactions to controls differ according to personality and prior experiences.

Accepted Answer

A) True 
 B)False

Question 5

The basic premise that all the activities of an organization will run smoothly gives rise to the need for control.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a characteristic of debt ratio?

Accepted Answer

A)  It indicates an organization's operational efficiency. 
B)  It indicates how well an organization is being managed. 
C)  It indicates how well an organization will be able to meet its short-term financial obligations. 
D)  It indicates an organization's ability to meet long-term obligations. 
E)  It evaluates how well an organization is managing its basic operations. 
A)  It indicates an organization's operational efficiency. 
B)  It indicates how well an organization is being managed. 
C)  It indicates how well an organization will be able to meet its short-term financial obligations. 
D)  It indicates an organization's ability to meet long-term obligations. 
E)  It evaluates how well an organization is managing its basic operations.

Question 7

_____ ratios measure the magnitude of owners' and creditors' claims on the organization.

Accepted Answer

A)  Profitability 
B)  Debt 
C)  Activity 
D)  Liquidity 
E)  Current 
A)  Profitability 
B)  Debt 
C)  Activity 
D)  Liquidity 
E)  Current

Question 8

The area of supervisory control in the control pyramid controls the person or persons implementing the controls.

Accepted Answer

A) True 
 B)False

Question 9

Problems and services can be standardized in terms of quantity and quality through the use of good controls.

Accepted Answer

A) True 
 B)False

Question 10

What is a balanced scorecard system? What are its advantages?

Accepted Answer

The Balanced Scorecard (BSC)system is a

Question 11

Which of the following statements is true about the placement of control in an organization?

Accepted Answer

A)  Control should rest only in the hands of the top management. 
B)  All organizations follow a highly centralized approach to decision making and controlling. 
C)  Pushing controls down in the organization permits higher-level managers to get totally involved in details. 
D)  Pushing controls down in the organization keeps the controllers away from the actual situations that require control. 
E)  Controls that are placed farther down the hierarchy elicit commitment from lower-level managers. 
A)  Control should rest only in the hands of the top management. 
B)  All organizations follow a highly centralized approach to decision making and controlling. 
C)  Pushing controls down in the organization permits higher-level managers to get totally involved in details. 
D)  Pushing controls down in the organization keeps the controllers away from the actual situations that require control. 
E)  Controls that are placed farther down the hierarchy elicit commitment from lower-level managers.

Question 12

Which of the following creates a problem when deciding on the proper amount of control to be placed?

Accepted Answer

A)  Individuals reacting in the same way to similar controls 
B)  Individuals involving themselves in the control-setting process 
C)  Individuals providing assistance in the control process 
D)  Individuals volunteering to create the controls 
E)  Individuals attempting to sabotage the controls 
A)  Individuals reacting in the same way to similar controls 
B)  Individuals involving themselves in the control-setting process 
C)  Individuals providing assistance in the control process 
D)  Individuals volunteering to create the controls 
E)  Individuals attempting to sabotage the controls

Question 13

A standard is a value used as a point of reference for comparing other values.

Accepted Answer

A) True 
 B)False

Question 14

_____ ratios evaluate how effectively an organization is managing some of its basic operations.

Accepted Answer

A)  Profitability 
B)  Debt 
C)  Liquidity 
D)  Leverage 
E)  Activity 
A)  Profitability 
B)  Debt 
C)  Liquidity 
D)  Leverage 
E)  Activity

Question 15

_____ graphically depict the relationship of volume of operations to profits.

Accepted Answer

A)  Break-even charts 
B)  Gantt charts 
C)  Program evaluation and review techniques 
D)  Management audits 
E)  Balanced scorecards 
A)  Break-even charts 
B)  Gantt charts 
C)  Program evaluation and review techniques 
D)  Management audits 
E)  Balanced scorecards

Question 16

Average collection period and accounts receivable turnover represent some commonly used _____ ratios.

Accepted Answer

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

Question 17

Outline some of the potential causes of performance deviations.

Accepted Answer

Some of the potential causes of performa

Question 18

In the control pyramid,_____ controls is the area in which a manager must pull together all the information provided by the other controls.

Accepted Answer

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

Question 19

How do management controls help managers in updating plans?

Accepted Answer

A)  They allow comparing what is happening with what was planned. 
B)  They provide with objective information about employee performance. 
C)  They standardize problems and services in terms of quantity and quality. 
D)  They help avoid solvable problems turning into crises. 
E)  They protect assets from inefficiency, waste, and pilferage. 
A)  They allow comparing what is happening with what was planned. 
B)  They provide with objective information about employee performance. 
C)  They standardize problems and services in terms of quantity and quality. 
D)  They help avoid solvable problems turning into crises. 
E)  They protect assets from inefficiency, waste, and pilferage.

Question 20

What are the three requirements of control?

Accepted Answer

The process of control has thr

When financial information is used for control purposes,_____ indicate how well an organization will be able to meet its short-term financial obligation.

_____ attempt to evaluate the overall management practices and policies of the organization.

Higher-level managers get too involved in details when controls are placed far down in the organization.

Reactions to controls differ according to personality and prior experiences.

The basic premise that all the activities of an organization will run smoothly gives rise to the need for control.

Which of the following is a characteristic of debt ratio?

_____ ratios measure the magnitude of owners' and creditors' claims on the organization.

The area of supervisory control in the control pyramid controls the person or persons implementing the controls.

Problems and services can be standardized in terms of quantity and quality through the use of good controls.

What is a balanced scorecard system? What are its advantages?

Which of the following statements is true about the placement of control in an organization?

Which of the following creates a problem when deciding on the proper amount of control to be placed?

A standard is a value used as a point of reference for comparing other values.

_____ ratios evaluate how effectively an organization is managing some of its basic operations.

_____ graphically depict the relationship of volume of operations to profits.

Average collection period and accounts receivable turnover represent some commonly used _____ ratios.

Outline some of the potential causes of performance deviations.

In the control pyramid,_____ controls is the area in which a manager must pull together all the information provided by the other controls.

How do management controls help managers in updating plans?

What are the three requirements 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

When financial information is used for control purposes,_____ indicate how well an organization will be able to meet its short-term financial obligation.

_____ attempt to evaluate the overall management practices and policies of the organization.

Higher-level managers get too involved in details when controls are placed far down in the organization.

Reactions to controls differ according to personality and prior experiences.

The basic premise that all the activities of an organization will run smoothly gives rise to the need for control.

Which of the following is a characteristic of debt ratio?

_____ ratios measure the magnitude of owners' and creditors' claims on the organization.

The area of supervisory control in the control pyramid controls the person or persons implementing the controls.

Problems and services can be standardized in terms of quantity and quality through the use of good controls.

What is a balanced scorecard system? What are its advantages?

Which of the following statements is true about the placement of control in an organization?

Which of the following creates a problem when deciding on the proper amount of control to be placed?

A standard is a value used as a point of reference for comparing other values.

_____ ratios evaluate how effectively an organization is managing some of its basic operations.

_____ graphically depict the relationship of volume of operations to profits.

Average collection period and accounts receivable turnover represent some commonly used _____ ratios.

Outline some of the potential causes of performance deviations.

In the control pyramid,_____ controls is the area in which a manager must pull together all the information provided by the other controls.

How do management controls help managers in updating plans?

What are the three requirements 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