Exam 10: Managerial Controls

What information source used to measure performance has the disadvantages of being subject to personal bias and consuming a lot of time?

What source of information used to measure performance provides information that is NOT filtered through others?

In Australia, retailers believe that ________ of lost stock is due to disloyal employees helping themselves by stealing at work.

The Industry Leader Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance. -Refer to The Industry Leader (Scenario).Beth, a senior staff member at the meeting, asked if there was any sort of correlation between an organisation's financial performance and its reputation.Frank replied that there is ________ correlation between the financial performance of an organisation and its reputation.

The Industry Leader Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance. -Refer to The Industry Leader (Scenario).Before he begins his discussion, Frank defines ________ as the accumulated end results of all the organisation's work processes and activities.

Financial statements are an example of concurrent controls.

The differences seen in organisational control systems of global organisations are primarily in the ________.

________ is a measure of how appropriate organisational goals are and how well an organisation is achieving those goals.

________ is (are)considered slow, are easy to file and reference, and provide greater comprehensiveness and conciseness than oral reports.

The most popular type of control relies on feedback.

Which of the following activities is part of 'controlling'?

Financial Ratios Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape.Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions that were asked. -Refer to Financial Ratios (Scenario).Donna was also interested in understanding the company's ability to meet short-term obligations, which meant that Jan had to calculate a(n)________ ratio.

The Balanced Scorecard Upon completing his industrial engineering degree, Evan Karnoupakis took a position as a manager with the Franklin Mint, a manufacturer of commemorative and collectible products.Bruce Benedict, Evan's boss and the VP of operations, has been asked by the organisation's CEO to look into the balanced scorecard approach of performance management to see whether this would be appropriate for the organisation.In turn, Mr Benedict has asked Evan to look into balanced scorecard approaches and report back to him. -Refer to The Balanced Scorecard (Scenario).The intent of the balanced scorecard is to ________.

Standards are created during the 'organising process'.

Financial Ratios Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape.Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions that were asked. -Refer to Financial Ratios (Scenario).Donna also asked Jan to give her an idea of the organisation's ability to meet the interest payments on its debt.Therefore, Jan looked to the section on ________ ratios.

The Industry Leader Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance. -Refer to The Industry Leader (Scenario).In order to clarify the importance of measuring organisational performance, Frank stated that ________ management is the process of acquiring, managing, renewing and disposing of assets as needed.

Managers should be involved in the control function even if things are going as planned.

'Corporate governance' is ________.

In a short essay, list and discuss the three separate and distinct steps in the control process.

Financial Ratios Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape.Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions that were asked. -Refer to Financial Ratios (Scenario).Finally, as the hour dragged to midnight, Jan finished calculating the ________ ratio because Donna wanted to know how efficiently and effectively management is using its assets to generate profits.