Question 1

A(n)  ________ budget allocates increased or decreased funds to a department by using the last budget period as a reference point.

Accepted Answer

A)   standardized
B)   fixed
C)   ero-based
D)   incremental
E)   tactical

Question 2

Current assets, fixed assets, and liabilities are all part of an organization's

Accepted Answer

A)   cash flow statement.
B)   capital expenditures budget.
C)   income statement.
D)   expense budget.
E)   balance sheet.

Question 3

Which of the following is NOT characteristic of an external audit?

Accepted Answer

A)   performed by CPAs
B)   primarily used when management suspects embezzlement
C)   performed by an independent organization
D)   verifies that generally accepted accounting principles have been followed
E)   verifies the accuracy and fairness of financial statements

Question 4

Which of the following is an example of a physical control?

Accepted Answer

A)   drug test
B)   sales forecast
C)   production schedule
D)   organizational chart
E)   car speedometer

Question 5

Dermot just learned that his company is closing, and all the employees will be laid off. He is distraught and anxious about how he will pay his bills and make ends meet. He is meeting with a head hunter later in the week. As Dermot prepares for the meeting, what should he say about his former company?

Accepted Answer

A)   "My time there was time wasted. They kept us so isolated that we never even met the clients."
B)   "I was able to learn from this experience. I now know what not to do in my next job."
C)   "I am so glad that job is over. I am surprised they were able to stay in business that long."
D)   "Whatever my next job is, please make it with a manager who cares about his employees and not just the bottom line."
E)   "Have you ever wished that you could just erase a line from your résumé? Well that is the line I would erase."

Question 6

King Power and Light has a goal of reducing its electric costs by installing solar panels on all of its building and supporting an increase of solar farms in the area. This will help to not only reduce company costs but also the costs passed down to its consumers. How would you describe King Power and Light's control system?

Accepted Answer

A)   It overemphasizes a means to an end.
B)   It seems like it will require a lot of paperwork.
C)   It will require new hires with new skill sets.
D)   It is setting a new standard that is behind the times.
E)   It is strategic and results oriented.

Question 7

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

Accepted Answer

A)   external perspective
B)   customer perspective
C)   internal business perspective
D)   financial perspective
E)   innovation and learning perspective

Question 8

A sales forecast is an example of an organizational control from the ________ area.

Accepted Answer

A)   informational
B)   physical
C)   human resources
D)   financial
E)   capital

Question 9

A(n)  ________ budget allocates resources on the basis of a single estimate of costs.

Accepted Answer

A)   unitary
B)   zero-based
C)   cash
D)   incremental
E)   fixed

Question 10

________ perspective helps top management focus on what the organization must excel at to effectively meet its financial objectives and customers' expectations.

Accepted Answer

A)   Operational
B)   Internal business
C)   Customer
D)   Financial
E)   Innovation and learning

Question 11

Why is it important for management to use a balanced scorecard?

Accepted Answer

A)   to help employees understand how their work contributes to the company's goals
B)   to view performance in several areas simultaneously
C)   to save companies in payroll costs
D)   to actually see the sequence of suppliers that contribute to a product
E)   to characterize informal structural arrangements

Question 12

All of the following are reasons why performance falls significantly short of the standard EXCEPT

Accepted Answer

A)   unrealistic standards.
B)   changing conditions.
C)   insufficient resources.
D)   insufficient management attention.
E)   unawareness of performance drop.

Question 13

A strategy map helps employees to feel engaged because it

Accepted Answer

A)   helps the employees calculate their productivity metric.
B)   shows how their work contributes to organizational effectiveness.
C)   explains the importance of their personal relationships with clients.
D)   influences the work process and levels of employee performance.
E)   aims to get increased employee commitment.

Question 14

Suppose you are a city planner. You are reviewing proposals for a new park and a new bus station. You only have enough funds for one project. Apply each of the two core principles of TQM as you make your decision on which project to fund.

Accepted Answer

The two core principles are people and i...

Question 15

At Hamilton Hardware, employees were asked how the quality of the company's customer service could best be measured, and management then implemented a survey system based on the feedback. The company has overcome which of the following barriers to success of control systems?

Accepted Answer

A)   overemphasis on one instead of multiple approaches
B)   overemphasis on paperwork
C)   overemphasis on means instead of ends
D)   too little employee participation
E)   too much control

Question 16

Service firms are different from for-profit businesses in all of the following ways EXCEPT

Accepted Answer

A)   They cannot hold inventory.
B)   They develop personal relationships.
C)   They offer services that are highly perishable.
D)   They provide services on demand.
E)   They require controls at many different points.

Question 17

You are the manager of a local pizzeria that has both sit-down service and delivery service. Describe at least three TQM techniques and explain how the pizzeria might implement each.

Accepted Answer

The TQM techniques described in the text...

Question 18

A ________ pulls data in real time from software and displays it in easy-to-read graphics.

Accepted Answer

A)   dashboard
B)   strategy map
C)   balanced scorecard
D)   control chart
E)   budget

Question 19

Describe how each level of management is involved in control and planning.

Accepted Answer

1. Strategic Control by Top Managers: St...

Question 20

Tactical control is performed mainly by

Accepted Answer

A)   the CEO.
B)   top managers.
C)   middle managers.
D)   first-level managers.
E)   team leaders.

Exam 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

Why is it important for management to use a balanced scorecard?

Correct Answer
verified

A strategy map helps employees to feel engaged because it

Correct Answer
verified

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

Correct Answer
verified

At Hamilton Hardware, employees were asked how the quality of the company's customer service could best be measured, and management then implemented a survey system based on the feedback. The company has overcome which of the following barriers to success of control systems?

Correct Answer
verified

Correct Answer
verified

A sales forecast is an example of an organizational control from the ________ area.

Correct Answer
verified

Current assets, fixed assets, and liabilities are all part of an organization's

Correct Answer
verified

You are the manager of a local pizzeria that has both sit-down service and delivery service. Describe at least three TQM techniques and explain how the pizzeria might implement each.

Correct Answer
verified
The TQM techniques described in the text...
View Answer

Service firms are different from for-profit businesses in all of the following ways EXCEPT

Correct Answer
verified

Describe how each level of management is involved in control and planning.

Correct Answer
verified
1. Strategic Control by Top Managers: St...
View Answer

A(n) ________ budget allocates resources on the basis of a single estimate of costs.

Correct Answer
verified

All of the following are reasons why performance falls significantly short of the standard EXCEPT

Correct Answer
verified

Suppose you are a city planner. You are reviewing proposals for a new park and a new bus station. You only have enough funds for one project. Apply each of the two core principles of TQM as you make your decision on which project to fund.

Correct Answer
verified
The two core principles are people and i...
View Answer

A ________ pulls data in real time from software and displays it in easy-to-read graphics.

Correct Answer
verified

________ perspective helps top management focus on what the organization must excel at to effectively meet its financial objectives and customers' expectations.

Correct Answer
verified

A(n) ________ budget allocates increased or decreased funds to a department by using the last budget period as a reference point.

Correct Answer
verified

Tactical control is performed mainly by

Correct Answer
verified

Which of the following is NOT characteristic of an external audit?

Correct Answer
verified

Which of the following is an example of a physical control?

Correct Answer
verified

Correct Answer
verified

Exam 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

Why is it important for management to use a balanced scorecard?

Correct AnswerverifiedShow Answer

A strategy map helps employees to feel engaged because it

Correct AnswerverifiedShow Answer

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

Correct AnswerverifiedShow Answer

At Hamilton Hardware, employees were asked how the quality of the company's customer service could best be measured, and management then implemented a survey system based on the feedback. The company has overcome which of the following barriers to success of control systems?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A sales forecast is an example of an organizational control from the ________ area.

Correct AnswerverifiedShow Answer

Current assets, fixed assets, and liabilities are all part of an organization's

Correct AnswerverifiedShow Answer

You are the manager of a local pizzeria that has both sit-down service and delivery service. Describe at least three TQM techniques and explain how the pizzeria might implement each.

Correct AnswerverifiedThe TQM techniques described in the text...View AnswerShow Answer

Service firms are different from for-profit businesses in all of the following ways EXCEPT

Correct AnswerverifiedShow Answer

Describe how each level of management is involved in control and planning.

Correct Answerverified1. Strategic Control by Top Managers: St...View AnswerShow Answer

A(n) ________ budget allocates resources on the basis of a single estimate of costs.

Correct AnswerverifiedShow Answer

All of the following are reasons why performance falls significantly short of the standard EXCEPT

Correct AnswerverifiedShow Answer

Suppose you are a city planner. You are reviewing proposals for a new park and a new bus station. You only have enough funds for one project. Apply each of the two core principles of TQM as you make your decision on which project to fund.

Correct AnswerverifiedThe two core principles are people and i...View AnswerShow Answer

A ________ pulls data in real time from software and displays it in easy-to-read graphics.

Correct AnswerverifiedShow Answer

________ perspective helps top management focus on what the organization must excel at to effectively meet its financial objectives and customers' expectations.

Correct AnswerverifiedShow Answer

A(n) ________ budget allocates increased or decreased funds to a department by using the last budget period as a reference point.

Correct AnswerverifiedShow Answer

Tactical control is performed mainly by

Correct AnswerverifiedShow Answer

Which of the following is NOT characteristic of an external audit?

Correct AnswerverifiedShow Answer

Which of the following is an example of a physical control?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The TQM techniques described in the text...
View Answer

Correct Answer
verified

Correct Answer
verified
1. Strategic Control by Top Managers: St...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The two core principles are people and i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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