Question 1

List the four major steps of a typical control system and describe ways in which each step can be performed.

Accepted Answer

The answer of List the four major steps of a...

Question 2

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed, is referred to as _____ control.

Accepted Answer

A)  feedforward
B)  concurrent
C)  feedback
D)  preliminary
E)  marketF) C) and D)
G) C) and E)

Question 3

Which of the following control systems does Western Mountains Health Associates utilize?

Accepted Answer

A)  Bureaucratic control
B)  Market control
C)  Clan control
D)  Feedforward control
E)  Concurrent controlF) A) and D)
G) A) and B)

Question 4

A _____ budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated as investments instead of as regular expenses.

Accepted Answer

A)  master
B)  cash
C)  capital
D)  production
E)  salesF) A) and B)
G) A) and C)

Question 5

Martha developed a revised balance sheet for her company. She used the balance sheet to show her company's ______ (the amounts the company owes to various creditors) .

Accepted Answer

A)  liabilities
B)  assets
C)  budgets
D)  diseconomies
E)  expensesF) C) and E)
G) A) and B)

Question 6

Performance standards can only be set with respect to quantity or quality.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best describes what a profitability ratio is?

Accepted Answer

A)  It shows the relative amount of funds in the business supplied by creditors and shareholders.
B)  It indicates a company's ability to pay short-term debts.
C)  It indicates management's ability to generate a financial return on sales or investment.
D)  It shows the profit margins for the last six months.
E)  It indicates the future profits from the current customer base.F) A) and B)
G) A) and C)

Question 8

Management myopia occurs when managers

Accepted Answer

A)  lack motivation to reach their performance targets and in turn find it difficult to motivate subordinates.
B)  limit their focus to short-term profits at the expense of longer-term strategic obligations.
C)  find themselves unable to rise beyond a certain level in the organizational hierarchy.
D)  are promoted beyond their level of competence.
E)  find it hard to progress within an organization due to corporate downsizing or paring of middle management layers.F) B) and C)
G) C) and D)

Question 9

An itemized financial statement of the income and expenses of a company's operations is called the ____.

Accepted Answer

A)  statement of financial ratios
B)  balance sheet
C)  cash flow statement
D)  assets and liabilities statement
E)  profit and loss statementF) A) and B)
G) A) and E)

Question 10

Which of the following is a commonly used source for obtaining performance data?

Accepted Answer

A)  Competitors
B)  Human resource department
C)  Written reports
D)  Upper management
E)  Technical analysts from outside the companyF) A) and E)
G) A) and D)

Question 11

On which of the following will Humberto be working?

Accepted Answer

A)  Balance sheet
B)  Assets
C)  Liabilities
D)  Stockholders' equity
E)  Profit and loss statementF) All of the above
G) A) and B)

Question 12

Procedures used to verify accounting reports and statements are referred to as ____.

Accepted Answer

A)  lean accounting
B)  accounting audits
C)  activity-based costing
D)  accounting reforms
E)  budget auditsF) B) and D)
G) C) and E)

Question 13

If bureaucratic and market mechanisms are insufficient for directing a company's workforce in today's environment, it can turn to structural control.

Accepted Answer

A) True 
 B)False

Question 14

How does clan control differ from bureaucratic control and market control?

Accepted Answer

A)  Clan control uses formal controls more often.
B)  Clan control does not assume that the interests of the organization and individuals naturally diverge.
C)  Clan control is based on past performance, whereas the other two try to influence future performance.
D)  Clan control is based on a more negative view of human character.
E)  Clan control is more heavily based on economic factors.F) A) and B)
G) None of the above

Question 15

After Glennon's restaurant opened, she spent the first two weeks closely correcting any flaws she found in the way the business operated. This is an example of _____ control.

Accepted Answer

A)  feedforward
B)  concurrent
C)  clan
D)  market
E)  proactiveF) All of the above
G) C) and E)

Question 16

Ideally, a transfer price should be _____ the price that the receiving business unit would have to pay in the marketplace.

Accepted Answer

A)  somewhat less than
B)  somewhat more than
C)  the same as
D)  at least half
E)  at least twiceF) A) and B)
G) D) and E)

Question 17

A balanced scorecard is a control system combining four sets of performance measures: financial, customer satisfaction, business processes (quality and efficiency) , and _____.

Accepted Answer

A)  technology
B)  bureaucracy and hierarchy
C)  productivity
D)  efficiency
E)  learning and growthF) B) and D)
G) A) and E)

Question 18

In large diversified companies, market controls are often used to regulate independent business units.

Accepted Answer

A) True 
 B)False

Question 19

On which of the following control systems does Agatha want the organization to focus?

Accepted Answer

A)  Clan
B)  Market
C)  Bureaucratic
D)  Concurrent
E)  FeedforwardF) A) and C)
G) None of the above

Question 20

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity is referred to as a(n)  ____.

Accepted Answer

A)  profit and loss statement
B)  balance sheet
C)  expense report
D)  income statement
E)  budget reportF) C) and D)
G) B) and E)

Exam 16: Managerial Control

Procedures used to verify accounting reports and statements are referred to as ____.

Correct AnswerverifiedShow Answer

Martha developed a revised balance sheet for her company. She used the balance sheet to show her company's ______ (the amounts the company owes to various creditors) .

Correct AnswerverifiedShow Answer

Management myopia occurs when managers

Correct AnswerverifiedShow Answer

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed, is referred to as _____ control.

Correct AnswerverifiedShow Answer

Performance standards can only be set with respect to quantity or quality.

Correct AnswerverifiedShow Answer

On which of the following will Humberto be working?

Correct AnswerverifiedShow Answer

A balanced scorecard is a control system combining four sets of performance measures: financial, customer satisfaction, business processes (quality and efficiency) , and _____.

Correct AnswerverifiedShow Answer

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity is referred to as a(n) ____.

Correct AnswerverifiedShow Answer

A _____ budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated as investments instead of as regular expenses.

Correct AnswerverifiedShow Answer

An itemized financial statement of the income and expenses of a company's operations is called the ____.

Correct AnswerverifiedShow Answer

Which of the following best describes what a profitability ratio is?

Correct AnswerverifiedShow Answer

If bureaucratic and market mechanisms are insufficient for directing a company's workforce in today's environment, it can turn to structural control.

Correct AnswerverifiedShow Answer

After Glennon's restaurant opened, she spent the first two weeks closely correcting any flaws she found in the way the business operated. This is an example of _____ control.

Correct AnswerverifiedShow Answer

In large diversified companies, market controls are often used to regulate independent business units.

Correct AnswerverifiedShow Answer

How does clan control differ from bureaucratic control and market control?

Correct AnswerverifiedShow Answer

On which of the following control systems does Agatha want the organization to focus?

Correct AnswerverifiedShow Answer

Ideally, a transfer price should be _____ the price that the receiving business unit would have to pay in the marketplace.

Correct AnswerverifiedShow Answer

List the four major steps of a typical control system and describe ways in which each step can be performed.

Correct AnswerverifiedShow Answer

Which of the following is a commonly used source for obtaining performance data?

Correct AnswerverifiedShow Answer

Which of the following control systems does Western Mountains Health Associates utilize?

Correct AnswerverifiedShow Answer

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