Question 1

Which of the following best describes controlling?

Accepted Answer

A)   the process of deciding where an individual should go and how to best go about it
B)   the process of inspiring people to best utilize the resources
C)   the process of bringing people and material resources together in working combinations
D)   the process of setting directions and allocating resources
E)   the process of measuring performance and taking action to ensure desired results

Question 2

Which of the following ratios is also known as acid test?

Accepted Answer

A)   current ratio
B)   debt ratio
C)   asset turnover ratio
D)   inventory turnover ratio
E)   quick ratio

Question 3

In exercising financial control over organizations, managers should consider liquidity, leverage, asset management, and profitability.

Accepted Answer

A) True 
 B)False

Question 4

Feedforward controls, also known as preliminary controls, are intended to ensure that objectives are clear, that proper directions are established, and that the right resources are available to accomplish objectives.

Accepted Answer

A) True 
 B)False

Question 5

What is management by exception?

Accepted Answer

A)   It is the point where performance objectives identify key results that one wants to accomplish.
B)   It is the situation where outputs are difficult or expensive to measure.
C)   It is the point where output standards and input standards are used to carefully document results.
D)   It is the point where past experience becomes the baseline for evaluating current performance.
E)   It is the practice of giving attention to situations that show the greatest need for action.

Question 6

In the control process, measurement must be accurate enough to identify significant differences between what is really taking place and what was originally planned.

Accepted Answer

A) True 
 B)False

Question 7

The potential for self-control is increased under all of the following conditions except:

Accepted Answer

A)   when people have a clear sense of organizational mission.
B)   when people know their performance goals.
C)   when people have the necessary resources to do their jobs well.
D)   when people work in an organization with a culture that restricts participation in decision making.
E)   when people treat each other with respect and consideration.

Question 8

Output standards measure effort in terms of the amount work expended in task performance.

Accepted Answer

A) True 
 B)False

Question 9

In utilizing a relative approach to compare desired and actual performance, a manager will use the organization's objectives to set the standard.

Accepted Answer

A) True 
 B)False

Question 10

Leverage differs from profitability in that leverage measures

Accepted Answer

A)   the ability to operate at minimum cost.
B)   the ability to meet short-term obligations.
C)   the ability to earn revenues greater than costs.
D)   the use of debt.
E)   asset and inventory efficiency.

Question 11

Which of the following statements is true about the first step of the control process?

Accepted Answer

A)   It involves the identification of key results that one wants to accomplish, by the performance objectives.
B)   It first involves the identification of the standards of measuring performance and then the identification of key results.
C)   It identifies the point where output standards and input standards are used to carefully document results.
D)   It involves relative comparisons that benchmark performance against that being achieved by other people, work units, or organizations.
E)   It focuses attention on substantial differences between actual and desired performance.

Question 12

Clan control represents the power of collective identity.

Accepted Answer

A) True 
 B)False

Question 13

Breakeven analysis calculates the point at which revenues cover costs under different "what-if" conditions.

Accepted Answer

A) True 
 B)False

Question 14

Effective planning by managers helps accomplish which step in the control process?

Accepted Answer

A)   measuring actual performance
B)   comparing actual performance with objectives and standards
C)   establishing performance objectives and standards
D)   taking necessary corrective action
E)   evaluating the results of corrective action

Question 15

In the measurement step of the control process, which statement is accurate?

Accepted Answer

A)   What gets measured tends to happen.
B)   Measurement really doesn't affect overall performance objectives.
C)   Effective control is still possible without measurement.
D)   Measurement is almost entirely subjective.
E)   Measurement is entirely subjective.

Question 16

Which of the following is the formula for measuring asset turnover?

Accepted Answer

A)   Current Assets ÷ Current Liabilities
B)   Current Assets - Inventories ÷ Current Liabilities
C)   Sales ÷ Total Assets
D)   Net Income ÷ Total Assets
E)   Total Debts ÷ Total Assets

Question 17

Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Accepted Answer

A) True 
 B)False

Question 18

The central question of concurrent control is: "What needs to be done before we initiate a new process?"

Accepted Answer

A) True 
 B)False

Question 19

The Pittsburgh Penguins organization has been outspoken about the need to clean up professional hockey, even applauding a decision made against one of their own players in 2011, when Matt Cooke was banned for the rest of the regular season and the first round of the playoffs after he elbowed Rangers defenceman Ryan McDonagh in the head. "The suspension is warranted because that's exactly the kind of hit we're trying to get out of the game," Pittsburgh GM Ray Shero said in a statement. "We've told Matt in no uncertain terms that this kind of action on the ice is unacceptable and cannot  happen." The action against Matt Cooke represents what type of control?

Accepted Answer

A)   concurrent control
B)   steering control
C)   feedback control
D)   feedforward control
E)   preliminary control

Question 20

Market control is essentially the influence of market competition on the behaviour or organizations and their members.

Accepted Answer

A) True 
 B)False

Exam 9: Control Processes and Systems

In exercising financial control over organizations, managers should consider liquidity, leverage, asset management, and profitability.

Correct Answer
verified

What is management by exception?

Correct Answer
verified

In the measurement step of the control process, which statement is accurate?

Correct Answer
verified

Which of the following best describes controlling?

Correct Answer
verified

Correct Answer
verified

Breakeven analysis calculates the point at which revenues cover costs under different "what-if" conditions.

Correct Answer
verified

Effective planning by managers helps accomplish which step in the control process?

Correct Answer
verified

In the control process, measurement must be accurate enough to identify significant differences between what is really taking place and what was originally planned.

Correct Answer
verified

The central question of concurrent control is: "What needs to be done before we initiate a new process?"

Correct Answer
verified

Clan control represents the power of collective identity.

Correct Answer
verified

Output standards measure effort in terms of the amount work expended in task performance.

Correct Answer
verified

Which of the following is the formula for measuring asset turnover?

Correct Answer
verified

The potential for self-control is increased under all of the following conditions except:

Correct Answer
verified

Leverage differs from profitability in that leverage measures

Correct Answer
verified

Which of the following statements is true about the first step of the control process?

Correct Answer
verified

Market control is essentially the influence of market competition on the behaviour or organizations and their members.

Correct Answer
verified

Which of the following ratios is also known as acid test?

Correct Answer
verified

Feedforward controls, also known as preliminary controls, are intended to ensure that objectives are clear, that proper directions are established, and that the right resources are available to accomplish objectives.

Correct Answer
verified

In utilizing a relative approach to compare desired and actual performance, a manager will use the organization's objectives to set the standard.

Correct Answer
verified

Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Correct Answer
verified

Exam 9: Control Processes and Systems

In exercising financial control over organizations, managers should consider liquidity, leverage, asset management, and profitability.

Correct AnswerverifiedShow Answer

What is management by exception?

Correct AnswerverifiedShow Answer

In the measurement step of the control process, which statement is accurate?

Correct AnswerverifiedShow Answer

Which of the following best describes controlling?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Breakeven analysis calculates the point at which revenues cover costs under different "what-if" conditions.

Correct AnswerverifiedShow Answer

Effective planning by managers helps accomplish which step in the control process?

Correct AnswerverifiedShow Answer

In the control process, measurement must be accurate enough to identify significant differences between what is really taking place and what was originally planned.

Correct AnswerverifiedShow Answer

The central question of concurrent control is: "What needs to be done before we initiate a new process?"

Correct AnswerverifiedShow Answer

Clan control represents the power of collective identity.

Correct AnswerverifiedShow Answer

Output standards measure effort in terms of the amount work expended in task performance.

Correct AnswerverifiedShow Answer

Which of the following is the formula for measuring asset turnover?

Correct AnswerverifiedShow Answer

The potential for self-control is increased under all of the following conditions except:

Correct AnswerverifiedShow Answer

Leverage differs from profitability in that leverage measures

Correct AnswerverifiedShow Answer

Which of the following statements is true about the first step of the control process?

Correct AnswerverifiedShow Answer

Market control is essentially the influence of market competition on the behaviour or organizations and their members.

Correct AnswerverifiedShow Answer

Which of the following ratios is also known as acid test?

Correct AnswerverifiedShow Answer

Feedforward controls, also known as preliminary controls, are intended to ensure that objectives are clear, that proper directions are established, and that the right resources are available to accomplish objectives.

Correct AnswerverifiedShow Answer

In utilizing a relative approach to compare desired and actual performance, a manager will use the organization's objectives to set the standard.

Correct AnswerverifiedShow Answer

Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Correct AnswerverifiedShow Answer

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