Deck 15: Managing Quality and Performance

Question 1

The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.

Answer 1

True

Question 2

The income statement shows revenues coming into the organization from all sources and subtracts all expenses.

Answer 2

True

Question 3

Most organizations measure and control performance using qualitative financial measures.

Answer 3

False

Question 4

A cash budget estimates receipts and expenditures of money on a daily or weekly basis.

Question 5

A standard for performance is included in an organization's overall strategic plan to compare organizational activities against.

Question 6

Bottom-up budgeting is a process in which lower-level managers anticipate their department's resource needs and pass them up to top management for approval.

Question 7

An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover.

Question 8

An expense budget lists forecasted and actual revenues of the organization.

Question 9

The implementation of total quality management involves the use of many techniques such as quality circles, benchmarking, Six Sigma principles, quality partnering, and continuous improvement.

Question 10

TQM is more likely to be successful when senior management has very high expectations and middle managers want to share authority.

Question 11

The systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance refers to organizational control.

Question 12

Continuous improvement is the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

Question 13

The four major perspectives of the balanced scorecard are customer service, external business processes, financial performances, and the organization's capacity for learning and growth.

Question 14

Six Sigma is an organization-wide effort to infuse quality into every activity in a company through continuous improvement.

Question 15

The goal of open-book management is to get every employee thinking and acting like a business owner.

Question 16

A survey from the American Management Association found about two-thirds of employers monitor the Internet use of their employees

Question 17

TQM tends to be most successful when it enriches jobs and improves employee motivation.

Question 18

ISO certification is based on a set of international standards for quality management.

Question 19

The process in which lower-level managers anticipate their departments' resource needs and pass them to top management for approval is called top-down budgeting.

Question 20

The liquidity ratio shows the company's ability to meet its current debt obligations.

Question 21

What is the first step in the feedback control system?

A)Establishing strategic objectives
B)Establishing standards of performance
C)Taking corrective action
D)Comparing performance to standards
E)Measuring actual performance

Question 22

The __________ budget lists planned investments in major assets.

A)capital
B)balance sheet
C)cash
D)revenue
E)profit

Question 23

Technologies that wirelessly transmit data from remote sensors and GPS devices to computers for analysis are referred to as biometrics.

Question 24

Silver n' Gold Inc.recently introduced a new control philosophy in which all employees have access to the same information that owners have, such as what money is coming in and where it is going.This is an example of which of the following?

A)Balanced scorecard
B)Six Sigma
C)Continuous improvement
D)Total quality management
E)Open-book management

Question 25

At LBK Industries, responsibility for quality control rests with a team of quality control inspectors and supervisors rather than with employees.LBK uses which of the following types of organizational control?

A)Matrix
B)Hierarchical
C)Decentralized
D)Bottom-up
E)Balanced

Question 26

In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders.This involves which of the following dimensions of the balanced scorecard?

A)Customer service
B)Potential for learning and growth
C)Financial performance
D)External business processes
E)Internal business processes

Question 27

According to the control model, after establishing standards of performance, the manager should ______.

A)compare performance to standards
B)get the standards approved by the supervisors and subordinates
C)measure actual performance
D)take corrective action
E)provide feedback

Question 28

Too much emphasis on close electronic monitoring can damage employee trust, create unhealthy levels of stress for employees, and hurt performance

Question 29

Which of the following budgets includes anticipated and actual expenses for a responsibility center?

A)Revenue
B)Cash
C)Capital
D)Expense
E)Operating

Question 30

All of the following are key steps of setting up feedback control systems, EXCEPT ______.

A)comparing performance to standards
B)establishing standards of performance
C)getting employee opinions
D)measuring actual performance
E)taking corrective action

Question 31

Decentralized control is characterized by reliance on all of the following, EXCEPT _______.

A)self-control
B)peer group
C)corporate culture
D)employee selection and socialization
E)the quality control department

Question 32

All well-designed control systems involve the use of __________ to determine whether performance meets established standards.

A)opinions
B)advice
C)consultants
D)researchers
E)feedback

Question 33

During the recent economic recession, companies cut discretionary spending, such as travel expenses, to improve the bottom line, and managers are pushing to keep those expenses from creeping back up.

Question 34

Stella, a systems manager for a large technology company, would like to get an understanding of her company's financial position with respect to assets and liabilities at the end of the fiscal year.To which of the following should she refer?

A)Income statement
B)Activity ratio
C)TQM report
D)Balance sheet
E)Balance scorecard

Question 35

Brad is a department manager at Home Theater, Inc.His sole role in the budget process is to implement the budget that is developed for him.This is an example of _______.

A)strategic budgeting
B)operational budgeting
C)top-down budgeting
D)management-by-objectives
E)bottom-up budgeting

Question 36

The basic assumption of hierarchical control is that people are incapable of self-discipline and cannot be trusted.

Question 37

Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating organizational activities to make them consistent with the expectations that are established by managers within the company.This is referred to as __________ control.

A)organizational
B)feedback
C)budgetary
D)systems
E)quality

Question 38

According to Valeant Pharmaceuticals CFO Howard Schiller, zero-based budgeting forces managers to ask themselves whether they really need to make a particular expenditure.

Question 39

Tammy is a production manager at Eagle's Nest, Inc.She is concerned that too much money is being wasted on inventory that is sitting in the warehouse too long.She should calculate a(n) _______ ratio.

A)current
B)inventory turnover
C)conversion
D)profitability
E)leverage

Question 40

Net income divided by sales yields the _______.

A)return on total assets
B)current ratio
C)liquidity ratio
D)profit margin on sales
E)corporate evaluation

Question 41

Saturn Party Supplies has invested heavily in a social media campaign and managers want to know how many inquiries about their products result in actual sales.Which ratio will give them that information?

A)Current
B)Quick
C)Inventory turnover
D)Conversion
E)Gross margin

Question 42

A quality circle is a group of __________ volunteer employees.

A)2 to 4
B)6 to 12
C)15 to 20
D)21 to 25
E)30 to 50

Question 43

A budgeting process in which lower-level managers budget their departments' resource needs and pass them up to top management for approval is called __________ budgeting.

Question 44

The C of Six Sigma's DMAIC stands for ______.

A)critique
B)correct
C)comply
D)control
E)contain

Question 45

Which budget shows the level of funds flowing through the organization and the nature of disbursements?

A)Expense
B)Revenue
C)Cash
D)Capital
E)Discretionary

Question 46

When __________ deviates from a __________, managers must interpret the deviation.

Question 47

Factors that can influence the success of a TQM program in a negative way include all of the following, EXCEPT _______.

A)tasks make high-skill demands on employees
B)management expectations are unrealistically high
C)middle managers are dissatisfied about loss of authority
D)workers are dissatisfied with other aspects of organizational life
E)managers wait for big, dramatic innovations

Question 48

The __________ lists planned investments in major assets such as buildings, heavy machinery, or complex information technology systems, often involving expenditures over more than a year

Question 49

Which of the following refers the process of measuring organizational process against the best in the industry?

A)Outsourcing
B)Continuous improvement
C)Environmental analysis
D)Benchmarking
E)Competitive measurement

Question 50

__________ standards represent an international standard for quality management.

A)ISO 9000
B)Six Sigma
C)TQM
D)Kaizen
E)Foreign Economy Index

Question 51

The D of Six Sigma's DMAIC stands for _______.

A)define
B)detail
C)develop
D)deduct
E)devote

Question 52

Which of the following is characteristic of a decentralized control system?

A)Decentralized control system emphasizes extrinsic rewards.
B)In a decentralized control system, employees follow instructions, and do exactly as they are told.
C)Decentralized control system has a rigid organizational culture.
D)Decentralized control system relies on task-related job descriptions.
E)Decentralized control system is based on the belief that people work best when they are committed to their organization.

Question 53

Actions associated with hierarchical control include ________.

A)relying on flexible authority, flat structure, expert power; everyone monitors quality
B)using detailed rules and procedures, formal control systems
C)relying on results-based job descriptions; emphasizes goals to be achieved
D)emphasizing extrinsic and intrinsic rewards (meaningful work, opportunities for growth)
E)recognizing culture as means for uniting individual, team, and organizational goals for overall control

Question 54

A __________ includes anticipated and actual expenses for each responsibility center and for the total organization.

Question 55

The recognized standard for evaluating and comparing companies on a global basis is _______.

A)The Quality Circle Seal of Approval
B)Corporate Governance inspection results
C)ISO certification
D)open-book management audits
E)Balanced Scorecard results

Question 56

__________ focuses on whether performance meets established standards.

Question 57

Which of the following is a quality control approach that emphasizes the relentless pursuit of higher quality and lower costs?

A)Continuous improvement
B)Cycle time
C)Quality circles
D)Six Sigma
E)Benchmarking

Question 58

In a traditional __________ approach, budgeted amounts for the coming year are imposed on middle- and lower-level managers.

Question 59

Which ratio tells whether a company has sufficient assets to convert into cash to pay off its debts?

A)Current
B)Quick
C)Inventory turnover
D)Conversion
E)Gross margin

Question 60

_____ continues to lead in the total number of ISO 9000 certifications.

A)The United States
B)South America
C)Europe
D)China
E)Africa

Question 61

The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis is referred to as __________.

Question 62

__________ is a term that describes technologies that wirelessly transmit data from remote sensors and GPS devices to computers for analysis.

Question 63

The __________ provides three types of information: assets, liabilities, and owners' equity.

Question 64

Sharing financial information and results with all employees in the organization is called __________ management.

Question 65

 A __________ ratio indicates an organization's ability to meet its current debt obligations.

Question 66

__________ involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process.

Question 67

__________ control uses cultural values, traditions, shared beliefs, and trust to foster generate compliance with organizational goals.

Question 68

Define organizational control.

Question 69

Define TQM.

Question 70

How does the balanced scorecard address potential for learning and growth.

Question 71

List the four major perspectives of a balanced scorecard.

Question 72

A __________ is any organizational department or unit under the supervision of a single person who is responsible for its activity.

Question 73

A __________ ratio measures internal performance with respect to key activities defined by management.

Question 74

The continuous process of measuring products, services, and practices against major competitors or industry leaders is called _________.

Question 75

List five factors that impede the success of total quality management programs.

Question 76

List the four steps in the feedback control model.

Question 77

__________ is a quality control approach that emphasizes a relentless pursuit of high quality and low costs.

Question 78

What is an expense budget and why is it important?

Question 79

List five factors associated with the success of total quality management programs.

Question 80

What is a capital budget and why is it important?