Controls And Control Systems Exam Prep Chapter 6

Exploring Management, 7e (Schermerhorn)

Chapter 6 Controls and Control Systems

1) The process of measuring performance and taking action to ensure desired results is a part of the management function of ________.

A) planning

B) organizing

C) leading

D) controlling

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

2) Which of the following management functions arranges people and resources for work?

A) Planning

B) Organizing

C) Leading

D) Controlling

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

3) Which of the following processes is a structured review of lessons learned and results accomplished through a completed project, task force assignment, or special operation?

A) A performance assignment

B) A planning session

C) A planning function

D) An after-action review

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

4) Measuring performance and ________ are the important aspects of any control system.

A) setting the direction

B) taking corrective action

C) inspiring employees

D) allocating resources

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

5) The control process begins is by ________.

A) comparing results with established standards for measurement

B) establishing objectives and standards for measuring them

C) measuring actual performance

D) taking necessary action

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

6) Which of the following is the second step in the control process?

A) Comparing performance with standards

B) Establishing objectives and standards

C) Measuring actual performance

D) Taking necessary action

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

7) A(n) ________ measures performance results in terms of quantity, quality, cost, or time.

A) forecast

B) output standard

C) input standard

D) data base

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

8) Output standards in business would include the quality of ________.

A) education employees have obtained

B) the raw materials used to make a product

C) the final product

D) production equipment

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

9) A(n) ________ measures work efforts that go into a performance task.

A) input standard

B) output standard

C) transparent control

D) leadership control

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

10) Which of the following skills is NOT required to measure actual performance for the control process?

A) You must be able to conduct accurate measurements.

B) You must be timely in the measuring process.

C) You must be willing to measure.

D) You must be able to graph performance objectives and standards.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 2-Control measures actual performance.

AACSB: Analytic

11) Which of the following types of comparisons establishes a baseline to evaluate current performance?

A) Historical comparison

B) Engineering comparison

C) Relative comparison

D) Empirical comparison

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 3-Control compares results with objectives and standards.

AACSB: Analytic

12) Focusing on substantial differences between actual and desired performance is called management by ________.

A) design

B) principal

C) direction

D) exception

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 4-Control takes corrective action as needed.

AACSB: Analytic

13) UPS carefully measures the routes and routines of its drivers to establish the time expected for each delivery. When a delivery manifest is scanned as completed, the driver's time is registered in an electronic performance log that is closely monitored by supervisors. In this scenario, UPS uses ________ comparisons.

A) historical

B) engineering

C) local

D) relative

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 3-Control compares results with objectives and standards.

AACSB: Analytic

14) Which of the following types of comparisons benchmarks performance against that being achieved by other people, work units, or organizations?

A) Historical comparison

B) Engineering comparison

C) Relative comparison

D) Empirical comparison

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 3-Control compares results with objectives and standards.

AACSB: Analytic

15) Which of the following is the final step in the control process?

A) Taking corrective action as needed

B) Comparing performance with standards

C) Establishing objectives and standards

D) Measuring actual performance

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 4-Control takes corrective action as needed.

AACSB: Analytic

16) Ensuring clear directions and needed resources before work begins refers to ________ control.

A) feedback

B) feedforward

C) concurrent

D) relative control

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

17) The type of managerial control that focuses on what happens during the work process is called ________ control.

A) feedforward

B) feedback

C) analytic

D) concurrent

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

18) Which of the following scenarios illustrates concurrent control?

A) Sumbu, the customer care manager in an amusement park, sends a survey to tourists that have visited the park.

B) Jose, the manager in a restaurant, ensures that the vegetables the restaurant orders are organic.

C) Bing, the supervisor in a toy factory, gives suggestions to workers when they are designing new toys.

D) Joshua, the stock manager in a steel factory, checks every evening whether adequate stocks are available for the next day's operations.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Reflective Thinking

19) Which of the following types of control takes place after completing an action?

A) Feedforward control

B) Feedback control

C) Concurrent control

D) Preventive control

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

20) Miriam, the customer service manager in a pharmaceutical company, is keen on ensuring customer satisfaction and loyalty. She sends follow-up mails to customers, gathers their responses to different products, and ensures that changes are made in the products accordingly. Which of the following types of control does this scenario illustrate?

A) Concurrent control

B) Market control

C) Feedback control

D) Clan control

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Reflective Thinking

21) Which of the following types of managerial control regulates work inputs?

A) Feedforward control

B) Concurrent control

C) Feedback control

D) Internal control

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

22) Which of the following is regulated by concurrent controls?

A) Work throughputs

B) Work inputs

C) Work outputs

D) Work clans

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

23) Which of the following is regulated by feedback controls?

A) Work throughputs

B) Work inputs

C) Work outputs

D) Work clans

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

24) A manager stopping by before a shift to see if everything is ready for the day's work illustrates ________ control.

A) steering

B) feedback

C) feedforward

D) concurrent

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

25) ________ control occurs as people exercise self-discipline in fulfilling job expectations.

A) Steering

B) Feedback

C) Internal

D) Concurrent

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

26) If managers at XYZ Inc. utilize direct supervision and other administrative systems as control mechanisms, which of the following controls do they exercise?

A) Internal control

B) External control

C) Bureaucratic control

D) Reward control

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Reflective Thinking

27) Which of the following controls influences behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision?

A) Internal control

B) External control

C) Bureaucratic control

D) Market control

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

28) Influencing behavior through social norms and peer expectations is called ________ control.

A) market

B) external

C) bureaucratic

D) clan

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

29) The influence of market competition on the behavior of organizations and their members refers to ________ control.

A) internal

B) clan

C) bureaucratic

D) market

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

30) Which of the following refers to the process of joint objective setting between a superior and a subordinate?

A) Managing by directives

B) Managing by objectives

C) Performance appraisals

D) Salary reviews

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

31) When considering the management by objectives technique, improvement objectives and ________ objectives are the most important.

A) strategic

B) financial

C) personal development

D) specific action

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

32) Managing by objectives requires all of the following EXCEPT ________.

A) a structured process

B) regular communication

C) objectives set by a management

D) standards for measurement

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

33) The goals set in the managing by objectives process should be ________.

A) specific and measurable

B) flexible with regard to deadlines

C) easy to accomplish

D) vague in accountability

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

34) ________ describes efforts to make quality an everyday performance objective and doing things right the first time.

A) Quality circles

B) Total quality management

C) Supply chain management

D) International quality control

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

35) ________ are graphical ways of displaying trends and exceptions to quality standards.

A) Instruction manuals

B) Equations

C) Control charts

D) Just-in-time data

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

36) ________ involve(s) always searching for new ways to improve work quality and performance.

A) Just-in-time scheduling

B) Supply chain management

C) Continuous improvement

D) Quality circles

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

37) One time activities with many component tasks that must be completed in proper order and according to budget are called ________.

A) reviews

B) assessments

C) projects

D) controls

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

38) Which of the following types of management makes sure that activities required to complete a project are planned well and accomplished on time?

A) Planning management

B) Financial management

C) On-time management

D) Project management

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

39) A ________ chart graphically displays the scheduling of tasks required to complete a project.

A) Porter

B) Gantt

C) Pareto

D) motion

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

40) ________ is a combination of the critical path method and the program evaluation and review technique.

A) CPM/PERT

B) A Gantt chart

C) A Pareto chart

D) Project management

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

41) The pathway from project start to conclusion that involves the longest completion time is called the ________.

A) critical path

B) economic order quantity

C) purchasing control level

D) financial minimum level

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

42) ________ control ensures inventory is only big enough to meet immediate needs.

A) Breakeven

B) Management

C) Inventory

D) Direct

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

43) The ________ method places new orders when inventory levels fall to predetermined points.

A) master level

B) economic order quantity

C) purchasing control level

D) financial minimum level

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

44) ________ scheduling routes materials to workstations immediately before they are ready for use.

A) On-time

B) Breakeven

C) Inventory

D) Just-in-time

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

45) The point at which revenues just equal costs is called the ________.

A) profit margin

B) breakeven point

C) maximum cost point

D) marginal revenue point

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

AACSB: Analytic

46) ________ analysis performs what-if calculations under different revenue and cost conditions.

A) Breakeven

B) Profit

C) Loss

D) Marginal

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

AACSB: Analytic

47) The two types of cost used to determine the breakeven point are ________ cost and ________ cost.

A) minimum; maximum

B) direct; indirect

C) fixed; variable

D) hard; soft

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

AACSB: Analytic

48) ________ measures ability to meet short-term obligations.

A) Liquidity

B) Leverage

C) Asset management

D) Profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

49) Which of the following financial ratios is the correct formula for the current ratio?

A) Current Assets – Inventory/Current Liabilities

B) Current Assets/Current Liabilities

C) Sales/Average Inventory

D) Current Assets/Total Liabilities

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

50) Which of the following financial ratios measures use of debt?

A) Profitability

B) Asset management

C) Liquidity

D) Leverage

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

51) Conformance with rules and procedures, efficiency in the use of resources, and work attendance are examples of input standards.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

52) Historical comparisons benchmark our performance against that being achieved by other people, work units, or organizations.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 3-Control compares results with objectives and standards.

AACSB: Analytic

53) The advantage of feedforward controls is the opportunity to intervene immediately when problems are detected.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

54) Managing by objectives is a system that works only to improve organizational improvement objectives.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

55) While writing a good performance objective, you should identify a date by which the key result will be accomplished.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

56) Six Sigma is rarely used in the global marketplace because it holds unreasonably high standards for manufacturers.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

57) If you subscribe to the quest for continuous improvement, you believe something can and always should be done better.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

58) The function of the economic order quantity method is to hold down both order sizes and inventory costs.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

59) The purpose of ________ is to make sure that plans are achieved and that actual performance meets or surpasses objectives.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

60) Control equation: Need for Action = ________ Performance – ________ Performance.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 3-Control compares results with objectives and standards.

AACSB: Analytic

61) ________ comparisons use past experience as a basis for evaluating current performance.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 3-Control compares results with objectives and standards.

AACSB: Analytic

62) Concurrent controls are also called ________ controls.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

63) If you follow-up with clients to see what they thought of the service level that you provided, you are using a(n) ________ type of control.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

64) Bureaucratic control is an example of a(n) ________ control.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

65) Business firms adjusting products, price, promotions, and other practices in response to customer feedback and competitor moves illustrates ________ control.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

66) ________ objectives document intentions to accomplish personal growth such as expanded job knowledge or skills.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

67) The common phrase for operations that are committed to quality objectives, continuous improvement, and doing things right the first time is ________.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

68) ________ is responsibility for the overall planning, supervision, and control of projects.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

69) To improve workflow and reduce costs, ________ seeks to arrange for materials to arrive right as they are needed.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

70) The point where losses end and profits begin is known as the ________ point.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

AACSB: Analytic

71) ________ measures profit generation.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

72) ________ measures asset and inventory efficiency.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

73) A(n) ________ measures performance on financial, customer service, internal process, and innovation and learning goals.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Balanced scorecards help top managers exercise strategic control.

AACSB: Analytic

74) Describe the basic steps in the control process.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.; Step 2-Control measures actual performance.; Step 3-Control compares results with objectives and standards.; Step 4-Control takes corrective action as needed.

AACSB: Analytic

75) Discuss the managing by objectives technique for integrating planning and controlling.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

76) As a manager of a firm, what steps would you take to increase internal control within employees?

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Reflective Thinking

77) Define the three types of time-related controls and their relationship to work inputs, work throughputs, and work outputs.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

78) Define and discuss the components of TQM (total quality management).

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.; Gantt charts and CPM/PERT are used in project management and control.; Inventory controls help save costs.

AACSB: Analytic

79) Discuss breakeven analysis. What is its intent? How is it calculated?

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

AACSB: Analytic

80) Discuss just-in-time scheduling (JIT). As a manager of a firm, would you use this approach to inventory control? Give reasons.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

AACSB: Reflective Thinking

81) Which of the following management functions sets the direction for an organization?

A) Planning

B) Organizing

C) Leading

D) Controlling

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

82) Which of the following management functions arranges inspires people to put forth their best efforts?

A) Planning

B) Organizing

C) Leading

D) Controlling

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

83) Which of the following is the third step in the control process?

A) Comparing performance with standards

B) Establishing objectives and standards

C) Measuring actual performance

D) Taking necessary action

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

84) ________ are numbers that identify key outcomes used to assess and track performance over time.

A) Forecasts

B) Databases

C) Metrics

D) Standards

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

85) At Home Décor Inc., the production manager demands zero defects on all raw materials received from its vendors. Which of the following concepts does this scenario illustrate?

A) Output standard

B) Feedback control

C) Input standard

D) Historical standard

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

86) Which of the following is regulated by feedforward controls?

A) Work throughputs

B) Work inputs

C) Work outputs

D) Work clans

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

87) ________ Sigma is a quality standard of 3.4 defects per million units of goods produced or services completed.

A) Three

B) Four

C) Five

D) Six

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

88) Six Sigma translates to a perfection rate of ________. This is a ________ quality standard.

A) 74.9997%; common

B) 74.9997%; rarely used

C) 99.9997%; common

D) 99.9997%; rarely used

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Quality control is a foundation of modern management.

AACSB: Analytic

89) ________ measures asset and inventory efficiency.

A) Liquidity

B) Leverage

C) Asset management

D) Profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

90) ________ measures profit generation.

A) Liquidity

B) Leverage

C) Asset management

D) Profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

91) The ________ sheet shows assets and liabilities at one point in time.

A) asset liability

B) balance

C) financial

D) income

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

92) The ________ statement shows profits or losses at one point in time.

A) asset liability

B) balance

C) financial

D) income

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

93) The ________ sheet shows assets and liabilities at one point in time.

A) asset liability

B) balance

C) financial

D) income

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

94) The ________ ratio is a leverage ratio.

A) balance

B) debt

C) current

D) ratio

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

95) The current and quick ratios are types of ________ ratios.

A) asset management

B) leverage

C) liquidity

D) profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

96) For liquidity, ________ is better. For leverage, ________ is better.

A) lower; lower

B) lower; higher

C) higher; lower

D) higher; higher

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

97) Asset turnover is used to measure ________.

A) asset management

B) leverage

C) liquidity

D) profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

98) Inventory turnover is used to measure ________.

A) asset management

B) leverage

C) liquidity

D) profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

99) Net margin measures ________.

A) asset management

B) leverage

C) liquidity

D) profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

100) ROA and ROE measure ________.

A) asset management

B) leverage

C) liquidity

D) profitability

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

101) For asset management, ________ is better. For profitability, ________ is better.

A) lower; lower

B) lower; higher

C) higher; lower

D) higher; higher

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

102) Cash, receivables, and inventories are ________ that are recorded on the ________.

A) current assets; balance sheet

B) current assets; income statement

C) fixed assets; balance sheet

D) fixed assets; income statement

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

103) Land and buildings are ________ that are recorded on the ________.

A) current assets; balance sheet

B) current assets; income statement

C) fixed assets; balance sheet

D) fixed assets; income statement

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

104) Accounts payable, accrued expenses, and taxes payable are ________ that are recorded on the ________.

A) current liabilities; balance sheet

B) current liabilities; income statement

C) long-term liabilities; balance sheet

D) long-term liabilities; income statement

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

105) Mortgages and bonds are ________ that are recorded on the ________.

A) current liabilities; balance sheet

B) current liabilities; income statement

C) long-term liabilities; balance sheet

D) long-term liabilities; income statement

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

106) Outstanding stock and retained earnings are ________ that are recorded on the ________.

A) owner's equity; balance sheet

B) owner's equity; income statement

C) long-term liabilities; balance sheet

D) long-term liabilities; income statement

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

107) A(n) ________ measures performance on financial, customer service, internal process, and innovation and learning goals

A) complete financial

B) balanced scorecard

C) SMART

D) managerial marker

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Balanced scorecards keep the focus on strategic control.

AACSB: Analytic

108) Lululemon had to recall it black yoga pants. This is an example of things being out of control.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Things to remember.

AACSB: Analytic

109) Control plays a positive and necessary role in the management process.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Things to remember.

AACSB: Analytic

110) Control is always good in the context of management.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Things to remember.

AACSB: Analytic

111) The after-action review focuses on managers taking responsibility for their performance efforts and accomplishments.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Controlling is one of the four functions of management.

AACSB: Analytic

112) Management by exception is the practice of giving attention to high-priority situations that show the greatest need for action.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 4-Control takes corrective action as needed.

AACSB: Analytic

113) Feedforward controls are also called preaction controls.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

114) Feedback controls are also called postaction controls.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

AACSB: Analytic

115) Internal control is also called self-control.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

116) Internal control occurs through direct supervision or administrative systems.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

117) Bureaucratic control influences behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

118) Market control influences behavior through social norms and peer expectations.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managers use both internal and external controls.

AACSB: Analytic

119) You want to learn the latest version of your school's course management software. This is a personal development objective.

Learning Objective: 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

AACSB: Analytic

120) The critical path is the pathway from project start to conclusion that involves the shortest completion time.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

121) Gantt charts ensure that you will complete a project on time.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Gantt charts and CPM/PERT improve project management and control.

AACSB: Analytic

122) The COVID-19 pandemic showed that JIT is the best way to manage inventory because it ensures products will always be available when they are needed.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

123) The balance sheet shows profits or losses at one point in time.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

124) The income statement will be displayed in a Sales – Expenses = Net Income format.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

125) A(n) ________ standard measures performance results in terms of quantity, quality, cost, or time.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

126) A(n) ________ standard measures work efforts that go into a performance task.

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.

Section Reference: Step 1-Control begins with objectives and standards.

AACSB: Analytic

127) The goal of ________ control is to make sure that any inventory is only big enough to meet immediate performance needs.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Inventory controls help save costs.

AACSB: Analytic

128) The balance sheet shows ________ at one point in time.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

129) The ________ shows profits or losses at one point in time.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Financial ratios measure key areas of financial performance.

AACSB: Analytic

130) Compare and contrast the management by exception and management by objectives techniques. How could they be used together?

Learning Objective: 6.1: Identify How and Why Managers Use the Control Process.; 6.2: Explain the Types of Controls Used by Managers.

Section Reference: Step 4-Control takes corrective action as needed.; Managing by objectives is a way to integrate planning and controlling.

AACSB: Analytic

131) What kinds of questions do managers need to ask to develop balanced scorecard goals and performance measures? Provide one sample goal and one sample measure for each question.

Learning Objective: 6.3: Identify Useful Control Tools and Techniques.

Section Reference: Balanced scorecards help top managers exercise strategic control.

AACSB: Analytic

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