Question 1

Which of the following is recommended for managing in an empowered setting?

Accepted Answer

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.F) B) and D)
G) A) and D)

Question 2

Controlling by _____ is most commonly used for the entire enterprise.

Accepted Answer

A)   profit and loss
B)   assets
C)   liabilities
D)   financial ratios
E)   expensesF) A) and B)
G) B) and E)

Question 3

The Six Sigma approach is based on an)  _____ that contributes)  to customer satisfaction.

Accepted Answer

A)   statistical analysis
B)   budgetary control
C)   strategic vision
D)   management audits
E)   increased customer baseF) A) and D)
G) A) and B)

Question 4

Budgeting information

Accepted Answer

A)   is confined to managerial decisions.
B)   is not confined to finances.
C)   is restricted to dollars.
D)   is inclusive of forecasting.
E)   is found in accounting ledgers.F) A) and C)
G) D) and E)

Question 5

Create a comparative balance sheet.

Accepted Answer

Exhibit 14.7 shows an example of a balan...

Question 6

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

Accepted Answer

Managers are discovering that ...

Question 7

Traditional methods of cost accounting

Accepted Answer

A)   are still appropriate in today's business environment.
B)   may be inappropriate in today's business environment.
C)   are based on updated methods.
D)   may not be appropriate for rigid hierarchical organizations.
E)   are reflective in accounting ledgers.F) All of the above
G) A) and E)

Question 8

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

Accepted Answer

A)   Clan
B)   Market
C)   Bureaucratic
D)   Concurrent
E)   FeedforwardF) A) and E)
G) A) and C)

Question 9

_____ indicate a company's ability to pay short-term debts.

Accepted Answer

A)   Liabilities
B)   Stockholders' equities
C)   Assets
D)   Liquidity ratios
E)   AuditsF) A) and D)
G) A) and C)

Question 10

Which of the following budgets is used for areas of the organization that incur expenses but no revenue?

Accepted Answer

A)   sales budget
B)   production budget
C)   cost budget
D)   cash budget
E)   master budgetF) C) and D)
G) None of the above

Question 11

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

Accepted Answer

Four budge...

Question 12

The most effective standards tend to be expressed in _____ terms; they are objective rather than subjective.

Accepted Answer

A)   quantitative
B)   qualitative
C)   balanced
D)   adequate
E)   technicalF) B) and D)
G) A) and C)

Question 13

The last step in a typical control system is

Accepted Answer

A)   taking action to correct problems.
B)   setting performance standards.
C)   measuring performance.
D)   comparing performance against the standards.
E)   revising standards.F) A) and C)
G) A) and E)

Question 14

Control and _____ have been called the Siamese twins of management.

Accepted Answer

A)   planning
B)   organizing
C)   leading
D)   directing
E)   empowermentF) A) and C)
G) A) and D)

Question 15

Traditionally, boards have tried to control CEO performance mainly through

Accepted Answer

A)   salary schedules.
B)   bonuses tied to productivity.
C)   perks.
D)   incentive pay.
E)   bonuses tied to long-term profit targets.F) D) and E)
G) A) and E)

Question 16

Clan control works best where tasks are certain and workers are independent.

Accepted Answer

A) True 
 B)False

Question 17

Market controls involve the use of

Accepted Answer

A)   rules and regulations.
B)   economic forces.
C)   authority.
D)   sales and variable costs levels.
E)   norms.F) A) and B)
G) A) and E)

Question 18

_____ budget sheet items over a long period of time uncovers important trends.

Accepted Answer

A)   Expanding
B)   Summarizing
C)   Enlarging
D)   Condensing
E)   MergingF) B) and E)
G) A) and E)

Question 19

_____ is the process of comparing a firm's practices and technologies with those of other organizations.

Accepted Answer

A)   Benchmarking
B)   Budgeting
C)   Six Sigma
D)   Management audit
E)   Feedforward controlF) A) and E)
G) A) and C)

Question 20

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

Accepted Answer

A) True 
 B)False

Exam 14: Managerial Control

Create a comparative balance sheet.

Correct AnswerverifiedExhibit 14.7 shows an example of a balan...View AnswerShow Answer

Which of the following is recommended for managing in an empowered setting?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedManagers are discovering that ...View AnswerShow Answer

Which of the following budgets is used for areas of the organization that incur expenses but no revenue?

Correct AnswerverifiedShow Answer

The Six Sigma approach is based on an) _____ that contributes) to customer satisfaction.

Correct AnswerverifiedShow Answer

Budgeting information

Correct AnswerverifiedShow Answer

Clan control works best where tasks are certain and workers are independent.

Correct AnswerverifiedShow Answer

Traditional methods of cost accounting

Correct AnswerverifiedShow Answer

_____ budget sheet items over a long period of time uncovers important trends.

Correct AnswerverifiedShow Answer

_____ is the process of comparing a firm's practices and technologies with those of other organizations.

Correct AnswerverifiedShow Answer

Traditionally, boards have tried to control CEO performance mainly through

Correct AnswerverifiedShow Answer

Control and _____ have been called the Siamese twins of management.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFour budge...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The most effective standards tend to be expressed in _____ terms; they are objective rather than subjective.

Correct AnswerverifiedShow Answer

Controlling by _____ is most commonly used for the entire enterprise.

Correct AnswerverifiedShow Answer

Market controls involve the use of

Correct AnswerverifiedShow Answer

_____ indicate a company's ability to pay short-term debts.

Correct AnswerverifiedShow Answer

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

Correct AnswerverifiedShow Answer

The last step in a typical control system is

Correct AnswerverifiedShow Answer

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Exhibit 14.7 shows an example of a balan...
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Managers are discovering that ...
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Four budge...
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