Managerial Control nan Chapter 14 Test Questions & Answers

M: Management, 6e (Bateman)

Chapter 14 Managerial Control

1) Effective managers make sure that activities are going as planned with the help of control.

2) Clan control is necessary when members of an organization lack common values, goals, and trust.

3) The chief financial officer (CFO) upholds conflicting interests and provides unofficial sanction to the final budget.

4) Controlling by profit and loss is most commonly used for the entire enterprise and, in the case of a diversified corporation, its divisions.

5) Allowing people to initiate their own corrective action encourages self-control and reduces the need for outside supervision.

6) Empowering employees to make decisions implies giving up control.

7) Select the definition of control.

A) Control refers to the expected performance for a given goal.

B) Control is any process that directs the activities of individuals toward the achievement of organizational goals.

C) Control is people's perceived likelihood that their efforts will enable them to attain their performance goals.

D) Control is the process of giving people additional tasks to do at the same time to alleviate boredom.

E) Control is the process of applying a consequence that increases the likelihood of a person repeating the behavior that led to it.

8) Glynnis, an employee, received an e-mail from an angry client about a certain product. Although it was not Glynnis's fault, she hesitated to report it to her manager because she knew that she would be blamed for it and could even be fired. In this case, which of the following is true of Glynnis's company?

A) The firm's expectations are not established in writing.

B) Employees are unclear about what needs to be achieved.

C) "Shoot the messenger" management exists, implying a lack of control.

D) Reviews are not held periodically.

E) Key data are not measured and reported in a timely manner.

9) At a town hall meeting, the CEO of a company spoke energetically about adopting cost-cutting measures due to the recent economic slump. However, a few days later, the employees found out that the CEO had gone on an exotic vacation using funds from the company. Which of the following is true about this company?

A) Key data are not measured and reported in a timely manner.

B) Reviews are not held periodically.

C) Employees are unclear about what needs to be achieved.

D) Senior managers set a bad example, implying a lack of control.

E) The firm's expectations are not established in writing.

10) A company is said to lack control when there is a(n) ________, that is the firm's expectations are not established in writing.

A) inadequacy of ethics in the culture

B) "shoot the messenger" management

C) lax top management

D) absence of policies

E) lack of periodic reviews

11) Control and ________ have been called the Siamese twins of management.

A) planning

B) organizing

C) leading

D) directing

E) empowerment

12) Bureaucratic control

A) does not assume that the interests of the organization and individuals naturally diverge.

B) is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.

C) involves the use of pricing mechanisms and exchange relationships to regulate activities within organizations.

D) is based on interpersonal processes of organization culture, leadership, and groups and teams.

E) is the use of rules, standards, regulations, hierarchy, and legitimate authority to guide performance.

13) ________ control is the use of rules, regulations, and authority to guide performance.

A) Clan

B) Bureaucratic

C) Market

D) Concurrent

E) Feedback

14) ________ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results.

A) Clan

B) Market

C) Bureaucratic

D) Concurrent

E) Feedforward

15) Market control

A) does not assume that the interests of the organization and individuals naturally diverge.

B) is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.

C) includes such items as budgets, statistical reports, and performance appraisals.

D) uses prices, competition, and exchange relationships to regulate activities.

E) is the use of rules, standards, regulations, hierarchy and legitimate authority to guide performance.

16) ________ control is based on the norms, values, shared goals, and trust among group members.

A) Clan

B) Feedback

C) Concurrent

D) Feedforward

E) Market

17) During challenging times when resources are limited and budgets need to be stretched, ________ control becomes crucial for survival.

A) individual

B) managerial

C) consumer

D) customer

E) stakeholder

18) "Are you telling me that we have to write off over $1 million in revenue because our eastern division manager did not accrue it properly?" asked the CEO. His CFO replied, "Yes. I know that we are a start-up, still working on developing policies, rules, and procedures, but, in this case, the division manager had no processes in place to monitor the project's progress." The CEO concluded, "The ________ has caused irreparable damage to our firm."

A) firm's expectations

B) lack of controls

C) agreed-upon standards

D) market control approach

E) bureaucratic control approach

19) Marv thought, "I'm not surprised that the corporate office canceled our funding. Costs had spiraled upward, and unanticipated technical problems had cropped up. We just didn't keep our eye on the ball, even though we had a great plan and sound strategies. Fundamentally, we lacked an effective means of control to ensure that

A) our marketing strategies were reflective of the old product."

B) employees took steps to solve problems."

C) the plans were carried out."

D) management was creative."

E) communication was clear."

20) ________ lay(s) out a framework for the future and provide(s) a blueprint for control.

A) Planning

B) Control systems

C) Creativity

D) Enhancing quality

E) Communication strategies

21) The first step in a typical control system is

A) setting performance standards.

B) comparing performance against the standards.

C) taking action to correct problems.

D) revising standards.

E) measuring performance.

22) The last step in a typical control system is

A) taking action to correct problems.

B) setting performance standards.

C) measuring performance.

D) comparing performance against the standards.

E) revising standards.

23) A(n) ________ is the level of expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed.

A) liability

B) balance sheet

C) standard

D) asset

E) audit

24) "In implementing the control process for our new operation, I first established performance standards," said Kelly. "Next, I measured performance. But I'm not sure that my measurement of performance is accurate." His boss replied, "In measuring performance, you can gather performance data from three sources: ________. Furthermore, the data need to be timely."

A) written reports, oral reports, and personal observation

B) client satisfaction surveys, oral reports, and personal observation

C) written reports, the grapevine, and personal observation

D) competitors' performance data, oral reports, and personal observation

E) written reports, oral reports, and analysts' statements

25) A division manager whispered to his peer as they left the monthly executive meeting, "Our new CEO is going to play hardball. Any of us whose division is performing with significant negative deviation from the established budget is going to get a lot of her concentrated attention." "What do you expect?" countered Randy. "She told us in our meeting that she would be using ________ as part of her control system."

A) the balance sheet

B) management myopia

C) our employment relationship

D) the principle of exception

E) the balance scorecard

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

A) feedback

B) concurrent

C) accounting

D) budget

E) feedforward

27) While plans are being carried out, ________ control is taking place.

A) feedback

B) specialist

C) preliminary

D) feedforward

E) concurrent

28) "Listen up," said, Dave Thoreson, dive team leader, as his team finished suiting up. "This is a hazardous dive. We've been properly trained and properly equipped with the necessary gear and tools to rescue the trapped cavers. Stay in physical contact with the divers in front of and behind you. After we complete the rescue, meet me to debrief what we did well and what we can improve." In this case, the proper training and equipment is an example of ________ control.

A) feedback

B) specialist

C) feedforward

D) operator

E) concurrent

29) ________ control is future oriented and aims to prevent problems before they arise.

A) Feedback

B) Specialist

C) Feedforward

D) Operator

E) Concurrent

30) Select the correct statement regarding six sigma.

A) The system was developed by General Electric.

B) It is designed to choose the correct organizational process for a job.

C) The lower the sigma number, the lower is the level of defects.

D) It indicates how often defects in a process are likely to occur.

E) It always improves the bottom line.

31) The six sigma approach is based on a(n) ________ that contribute(s) to customer satisfaction.

A) statistical analysis

B) budgetary control

C) strategic vision

D) management audits

E) increased customer base

32) A(n) ________ is an evaluation of the effectiveness and efficiency of various systems within an organization.

A) standard

B) management audit

C) innovation catalyst

D) budget

E) profit and loss statement

33) External audits are used for

A) evaluating financial stability.

B) evaluating production efficiency.

C) evaluating sales effectiveness.

D) identifying possible mergers or acquisitions.

E) identifying earnings potential.

34) External audits are useful for preliminary control because they

A) can assess what a company has done for itself.

B) review a company's past, present, and future.

C) can evaluate how a company has served its customers of its goods or services.

D) can prevent problems from occurring.

E) are more satisfying as operators benefit by having a more enriched job.

35) Assessing the planning, organizing, leading, and controlling efforts of one's own organization is the essential function of

A) strategic audit.

B) feedforward control.

C) feedback control.

D) external audit.

E) internal audit.

36) A(n) ________ is an evaluation conducted by one organization of another organization.

A) external audit

B) market control

C) clan control

D) budget

E) activity-based costing

37) ________ detect and correct significant variations, or discrepancies, in the results of plans and activities.

A) Quality standards

B) Quantity standards

C) Control systems

D) Performance systems

E) Communication strategies

38) "After a long and costly two weeks, I have lots of data, that I don't know how to analyze. I don't know what constitutes good performance as opposed to bad performance," said Mickey to his boss. His boss replied, "Mickey, it sounds as if you failed to first establish a(n) ________ by which to assess your data."

A) parameter

B) locus

C) measurement

D) standard

E) index

39) In ________ control, instead of waiting for results and comparing them with goals, a manager or employees can exert control by limiting activities in advance.

A) feedforward

B) concurrent

C) feedback

D) forward

E) internal

40) Sandi, shift supervisor at Johnson Meatpacking, has the highest performing team. One reason for this is how she controls her team's activities. First, she ensures that her subordinates are properly trained and properly equipped with the necessary protective equipment and work tools. Then, during the shift, she carefully monitors her workers' actions, taking notes and even measurements as needed. Finally, at the end of each work week, she analyzes her notes and measurement data, and she uses the results of her analysis to make needed production changes the following week. When Sandi is monitoring her workers' actions, she is exercising ________ control.

A) feedforward

B) concurrent

C) forward

D) feedback

E) external

41) ________ provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

A) Internal audits

B) Internal evaluations

C) External audits

D) Financial questions

E) Legal briefs

42) ________ are targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance.

A) Skunkworks

B) Liabilities

C) Management audits

D) Gatekeepers

E) Standards

43) Policies restricting workplace romantic involvement, tattoos and body art, and public disclosure of corporate information are examples of ________ control.

A) social

B) feedback

C) concurrent

D) feedforward

E) clan

44) ________ control focuses on the use of information about results to correct deviations from the acceptable standard after they arise.

A) Reactionary

B) Concurrent

C) Corrective

D) Outback

E) Feedback

45) ________ is the second stage of budgetary control.

A) Responding appropriately

B) Performing budgetary operations

C) Comparing six sigma data

D) Establishing expectations

E) Taking action

46) A ________ budget is used for areas of the organization that incur expenses but produce no revenue.

A) sales

B) production

C) cost

D) cash

E) master

47) Greta is the financial manager at a candy manufacturer. One of her duties is to make a budget that shows the forecasted receipts and expenditures of the company, the amount of working capital available, and the degree to which it should obtain funds from outside of the firm. Greta makes this budget after all other budget estimates have been completed. Greta is working on a ________ budget.

A) master

B) cash

C) cost

D) production

E) sales

48) In his new employee orientation training, Fabian heard Meredith, his new accounting supervisor, explain, "At Williams Corporation, we do not use traditional cost accounting. Rather, we use activity-based costing, or ABC. According to ABC, we ________ costs according to what our employees do, rather than what the company spends."

A) audit

B) expend

C) trade

D) allocate

E) benchmark

49) Required information for preparing a ________ budget includes types and capabilities of machines and availability of materials.

A) production

B) capital

C) cash

D) sales

E) cost

50) Budgeting information is

A) confined to managerial decisions.

B) not confined to finances.

C) restricted to dollars.

D) inclusive of forecasting.

E) found in accounting ledgers.

51) The ________ budget is essential to every business.

A) cash

B) sales

C) cost

D) production

E) operational

52) Traditional cost accounting

A) is still appropriate today.

B) may be inappropriate today.

C) is based on updated methods.

D) may not be appropriate for rigid hierarchical organizations.

E) is reflective in accounting ledgers.

53) "I have to help my operations manager reduce expenses," said Oliver, "but my expense categories—salaries, fringes, supplies, and fixed costs—are too general to give me guidance." Candice, his accounting supervisor, said, "Let me show you a different approach, so that you can develop data that will identify areas for expense reduction. I suggest that you use ________. It will identify streams of activity to which you can then allocate costs across particular business processes according to the time employees devote to those activities."

A) sales forecasting

B) production costing

C) activity-based costing

D) capital costing

E) operational costing

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

A) profit and loss statement

B) balance sheet

C) expense report

D) income statement

E) budget report

55) ________ are the values of the various items the corporation owns.

A) Liabilities

B) Assets

C) Profits

D) Audits

E) Equities

56) ________ are the amounts the corporation owes to various creditors.

A) Liabilities

B) Equities

C) Dividends

D) Profits

E) Assets

57) ________ is the amount accruing to the corporation's owners.

A) Stockholders' equity

B) Liability

C) Dividend

D) Audit

E) Asset

58) Select the relationship represented by the balance sheet.

A) assets + liabilities + stockholders' equity = 0

B) assets + liabilities = stockholders' equity

C) assets = liabilities + stockholders' equity

D) assets + stockholders' equity = liabilities

E) assets = liabilities – stockholders' equity

59) A(n) ________ is an itemized financial document of the income and the expenses of a company's operations.

A) balanced scorecard

B) appropriation account

C) surplus

D) fiscal policy

E) profit and loss statement

60) ________ indicate a company's ability to pay short-term debts.

A) Liabilities

B) Stockholders' equities

C) Assets

D) Liquidity ratios

E) Audits

61) Suzanne has recently reviewed a number of indicators of financial control. The one that troubled her, the ________, indicated that the company could have trouble meeting its short-term financial obligations.

A) profit and loss statement

B) profitability ratio

C) leverage ratio

D) current ratio

E) return on investment

62) ________ ratio is the name of the most common liquidity ratio, current assets to current liabilities.

A) Debt-equity

B) Current

C) Profit and loss

D) Return on investment

E) Stockholders' equity

63) A ________ is a liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.

A) current ratio

B) return on investment

C) debt-equity ratio

D) leverage ratio

E) profitability ratio

64) ________ ratios show the funds supplied by creditors and shareholders.

A) Liquidity

B) Current

C) Net working capital

D) Leverage

E) Profitability

65) The ________ ratio indicates the company's ability to meet its long-term financial obligations.

A) profitability

B) liquidity

C) debt-equity

D) current

E) net working capital

66) ________ ratios indicate management's ability to generate a financial return on sales or investment.

A) Liquidity

B) Leverage

C) Net working capital

D) Profitability

E) Current

67) ________ refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

A) Return on investment

B) Management audit

C) Balanced scorecard

D) Management myopia

E) Provincialism

68) A company enforced a rule that employees were required to submit their cell phones for safekeeping before entering their work bay. Employees followed the rule in order to avoid getting into trouble with the management. As a result, many of them missed important phone calls from their clients/customers. This scenario is an example of

A) market control.

B) management myopia.

C) dysfunctional behavior.

D) rigid bureaucratic behavior.

E) resistance to control.

69) When a control system prompts employees to do only tasks required in their formal job descriptions, it causes

A) excessive subordination.

B) tactical behaviors.

C) rigid bureaucratic behaviors.

D) resistance to supervision.

E) resistance to change.

70) ________ behavior occurs when employees feel forced to attempt to "beat the system."

A) Rigidly bureaucratic

B) Tactical

C) Resisting

D) Defensive

E) Myopic

71) Pete noticed a pattern at the annual budgeting session of his company. Mid-level managers were asking for unrealistically high budgets while top management was attempting to limit budgets under last year's actual expenditures. Management used ________ strategies.

A) budget breakdowns

B) bureaucratic budgeting

C) budget resistance

D) tactical behaviors

E) rigid behaviors

72) Select a reason why employees resist control systems.

A) Control systems can change the power structure of the organization.

B) Control systems make employees less accountable for their performance.

C) Control systems decrease the accuracy of performance data.

D) Control systems ensure the security of employees.

E) Control systems require cooperation between employees.

73) ________ budget sheet items over time uncovers important trends.

A) Expanding

B) Summarizing

C) Enlarging

D) Condensing

E) Merging

74) "Many of you management trainees do not have formal educations or degrees in accounting or finance. And that is OK," said the corporate trainer. "That's why this training module will cover control by ________, which is most commonly used for the entire enterprise and, in the case of a diversified corporation such as ours, its divisions."

A) profit and loss

B) assets

C) liabilities

D) financial ratios

E) expenses

75) "The amount of information in the accounting reports is so overwhelming that I cannot understand it," said Ron to his division manager, Stan. "Yes," said Stan, "The sheer volume of the numbers in the reports is daunting. That's why we have decided that an effective approach for checking our firm's overall performance is to use ________, which indicate strengths and weaknesses."

A) profit and loss statements

B) key financial ratios

C) assets

D) liabilities

E) balance sheets

76) "With the rollout of this new ________, we will be able to get a much more accurate picture of how each division—and, in fact, each operations manager, each sales manager, and each sales professional—is performing. And we will be able to hold each manager and employee more accountable. As a result, do not be surprised when we receive a lot of resistance from across the organization," said Angie Summers, CFO of Blunt International.

A) profitability ratio

B) external audit

C) tactical behavior

D) comprehensive control system

E) expense report

77) "My business relationship with the Midwest sales rep has really deteriorated. We used to cooperate; now we ________," said the manager of the Southwest region. "And I blame our new control system. Every month, managers across the entire enterprise get profit and loss statements for all divisions and business units. We look at one another's performance and are less likely to help one another when we know that our business unit or division may suffer a loss in profitability as a result. After all, promotions, salary increases, and bonus pools are tied to our profitability."

A) compete

B) promote change

C) resist change

D) feel threatened

E) ignore one another

78) The ________ is an itemized financial statement of the income and expenses of a company's operations.

A) balanced scorecard

B) current ratio

C) return on investment

D) balance sheet

E) profit and loss statement

79) To be effective, control systems must

A) be based on subjective standards.

B) communicate needed information upward in the organization.

C) be acceptable to top stockholders.

D) use multiple approaches.

E) centralize decision making.

80) ________ motivates people and provides information that enables them to correct their own deviations from performance standards.

A) Strategic window

B) Groupthink

C) Management myopia

D) Feedback

E) Provincialism

81) A ________ refers to a control system combining four sets of performance measures: financial, customer, business process, and learning and growth.

A) balanced scorecard

B) concurrent control

C) management audit

D) feedforward control

E) standard

82) The most effective standards are expressed in ________ terms; they are objective more than subjective.

A) quantitative

B) qualitative

C) balanced

D) adequate

E) technical

83) "Well, no wonder our customers are leaving us!" said George Levy, CEO of Baldwin Sports. "For the past year, our control system has measured and reported the days between order receipt and order shipped, rather than the days between order receipt and date requested by our customers. What we are measuring may make us look and feel good, but we are measuring the wrong thing!" Baldwin Sports is committing the "deadly sin" of performance measurement known as

A) vanity.

B) pettiness.

C) provincialism.

D) inanity.

E) narcissism.

84) Angered, Chet, an outside salesman for ABC Products, told his supervisor, "I received a memo from our accounting department that, effective immediately, all employees and their managers will receive a monthly report measuring each employee's days-in-office statistics. And over the next 12 months, the days-in-office metric is expected to increase by 50 percent to reduce our firm's travel costs. How can I do outside sales, when I am expected to spend more days inside the office?" Chet is expressing a view that his firm is committing the "deadly sin" of ________ by measuring days-in-office for outside sales people.

A) narcissism

B) frivolity

C) pettiness

D) inanity

E) vanity

85) Market controls use

A) rules and regulations.

B) economic forces.

C) authority.

D) sales and variable costs levels.

E) norms.

86) Using market control mechanisms is criticized for

A) relying too heavily on rules and procedures.

B) not adequately reflecting organizations' total value.

C) being too dependent on the organizational culture.

D) enhancing environmental sustainability.

E) overly centralizing decision making and power.

87) A(n) ________ price is internally charged by one organizational unit for a good or service that it supplies to another unit.

A) substitute

B) transfer

C) department

D) organizational

E) budget

88) Traditionally, boards try to control CEO performance mainly through

A) salary schedules.

B) bonuses tied to productivity.

C) balanced scorecards.

D) incentive pay.

E) bonuses tied to long-term profit targets.

89) Empowerment is important in organizations today because

A) management has changed.

B) employees' jobs have become less challenging.

C) employees are more concerned about pay.

D) labor unions are growing.

E) the role of technology has increased.

90) ________ involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

A) Empowerment

B) Authority control

C) Bureaucratic control

D) Cultural control

E) Clan control

91) A practical guideline for managing in an empowered world is to

A) put control where the best people are.

B) maintain the status quo.

C) use after-the-fact controls.

D) base control on company norms.

E) reinforce responsiveness and teamwork.

92) Select the true statement regarding managing in an empowered world.

A) "High-flex" organizations are based on obedience.

B) Team performance and adding value to the customer should be emphasized.

C) Information must police decision making.

D) Close supervision, checks, and balances are recommended.

E) Emphasis should be put on managing by numbers.

93) "This is the third time that our business unit has been sold in the past five years," said Bobbi. "Each time, our managers lose their jobs, and workers like us have to learn to work under new managers and new systems. Our business unit has been just a minor piece of several large diversified companies, and our performance has been compared to other business units' performance in these companies. As a result, we have been repeatedly bought and sold based on market controls, and employees often ________ as a result."

A) suffer

B) benefit

C) surrender

D) grieve

E) thrive

94) Sullivan said to his manager, "Theo, I need to tell you that I have received an unsolicited offer from a competitor. I've enjoyed my eight years at Smith Enterprises, and I'd like to stay. But the offered salary is 20 percent higher than my current salary. The other firm cited what I have learned this past year on the public works job as a particularly valuable skill." Sullivan is a highly valued employee, and Theo has been grooming him as his successor. If Theo were to consider market rates as an important indicator of worth in responding to Sullivan, Theo would most likely

A) transfer Sullivan to a division in another city where the competitor does not have an office.

B) explain to Sullivan that internal resource considerations establish Sullivan's salary.

C) seek to retain Sullivan by increasing his salary by 25 percent.

D) contact the competitor and inform them that Sullivan is "off limits."

E) terminate Sullivan's employment for insubordination and lack of loyalty.

95) ________ keep CEOs focused on the company's longer-term health.

A) Market controls

B) Balanced scorecards

C) Market-based wages

D) Transfer prices

E) Transfer controls

96) A(n) ________ is the internal charge by one organizational unit for a good or service that it supplies to another unit.

A) market control

B) transfer price

C) outsource item

D) bureaucratic control

E) balanced scorecard

97) ________ has become a necessary part of a manager's control repertoire.

A) Denial

B) Consent

C) Empowerment

D) Veto

E) Cooperation

98) TuffStone Gypsum is a corporation that produces material for wallboard and other applications. They are a hierarchical organization, with a strict chain of command culture and a strict set of rules and regulations. They track a large amount of data using statistical techniques, and they use this data to regulate behavior and results. TuffStone follows a ________ control system.

A) bureaucratic

B) market

C) clan

D) feedforward

E) concurrent

99) TriCounty Health is a regional medical center. They tie pricing of services and profits to specific services in the medical center. TriCounty Health uses a ________ control system.

A) bureaucratic

B) market

C) clan

D) feedforward

E) concurrent

100) "Once per year, our CEO stations himself for an entire day in the internal stairwell, counseling employees to use the handrail if they are failing to do so," said Huck. "Boy, that really makes an impression. He ‘walks the talk' regarding our corporate value of safety." The bureaucratic control that the CEO is using is known as ________ control.

A) feedback

B) feedforward

C) concurrent

D) market

E) clan

101) "The new phones are really high-tech, but they are also very complicated to use," said Belinda, administrative manager for Wellman Enterprises. "I will schedule several training workshops that the staff can attend, and I will teach them how to use the phones." The bureaucratic control that Belinda will use is ________ control.

A) feedback

B) feedforward

C) concurrent

D) market

E) clan

102) "Over the past five years, some of our new entry-level employees have been stars, some have been solid, and some have not met our expectations," said Alexa, manager of operations. "We will be gathering data on entry-level employees' performances and correlating those performances with college GPAs and college leadership positions. We will use our results to fine-tune our campus recruiting program so that we hire more star employees." The bureaucratic control that Alexa is describing is ________ control.

A) feedback

B) feedforward

C) concurrent

D) market

E) clan

103) "I think that we can manufacture 12,000 units next year," said Hector, factory manager for XY Enterprises. "But I will need to buy significantly more tons of raw material and more replacement parts." Jill, Operations Division Manager, replied, "Hector, I'm glad to hear that. You will need to include all of these physical units in your ________ budget for next year."

A) sales

B) production

C) cost

D) cash

E) profit-loss

104) "Frank, if our top-level management wants us to produce a new line of lawn tractors over the next ten years, we will need to invest in another factory assembly line. And that's going to cost big bucks," said Butch Linfield, factory manager for GreenLawn Inc. "Please start greasing the skids internally. I don't want the home-office executives to be surprised when they see high-dollar fixed assets in my ________ budget."

A) sales

B) production

C) capital

D) master

E) operational

105) "Why is the ________ budget for next year 33 percent higher than this year's actual expenses?" asked Alicia Tobin, CEO of Peerless Group. Her CFO, Ben Burroughs, replied, "We need to hire two additional human resources professionals to oversee the new benefits program and an additional attorney to handle claims. Also, our new lease for Building A will go into effect, and that includes an 11 percent increase in the first year." Alicia replied, "Ouch. It's tough to absorb those kinds of increases from parts of our organization that generate no revenue."

A) cash

B) cost

C) production

D) master

E) maintenance

106) "All right, we have budget inputs from all six divisions. I have consolidated all of these inputs into a draft spreadsheet, and I have added other corporate budgets into the spreadsheet" said Jeannine Starks, CFO of LemonTree Products, to her fellow executives. "We need to review this ‘budget of budgets' and get back to the division manager with our comments. After they incorporate our comments and submit their revised budget inputs, I will consolidate the division budgets and all other budgets into a ________ budget."

A) master

B) sales

C) capital

D) cost

E) maintenance

107) What are some of the signs that a company lacks controls?

108) Describe the three broad strategies for achieving organizational control.

109) What are the four major steps of the control process?

110) Describe the three sources from which performance data are commonly obtained.

111) Write a note on the two basic types of controls that are feasible in a computer-controlled production technology.

112) Describe feedback control, feedforward control, and concurrent control.

113) Describe at least four of the different types of budgets that are frequently used.

114) What are the reasons people strongly resist control systems?

115) Describe the criteria that effective control systems should meet.

116) According to Michael Hammer, what are the seven "deadly sins" of performance measure to avoid?

117) Briefly describe market controls at the corporate level.

118) Why are control systems based solely on bureaucratic and market mechanisms insufficient for directing today's workforce?

119) Describe what is meant by budgetary controls and how they affect the budget.

120) Create a comparative balance sheet.