Deck 19: Basic Elements of Control

Question 1

The last step in the control process is to change the standard.

Answer 1

False

Question 2

After comparing performance against control standards managers should never change the standard.

Answer 2

False

Question 3

An effective way to promote employee participation in the control process is to use screening controls.

Answer 3

True

Question 4

Strategic controls are concerned with how well the organization aligns itself with the environment.

Question 5

An after-action report is a screening control.

Question 6

One purpose of control is to simplify organizations.

Question 7

Internal audits examine the efficiency and appropriateness of financial and accounting procedures.

Question 8

The control of human resources is the most important area,because human resources are related to the control of all the other resources in an organization.

Question 9

Many contemporary organizations do not allow managers to participate in the budget process.

Question 10

Businesses must manage their finances so that revenues are sufficient to cover costs.Not-for-profit organizations such as universities do not have the same concerns.

Question 11

If an organization involves operating employees in decisions about quality control,the organization is more likely to have convoluted,control.

Question 12

An operating budget is a budget that determines the number of units to be produced during the coming time period.

Question 13

The responsibility for managing control rests on the CEO.

Question 14

A properly designed control system can help management anticipate,monitor,and respond to changing circumstances.

Question 15

External audits examine the efficiency and appropriateness of financial and accounting procedures.

Question 16

Reporters who verify stories with additional sources are using screening control.

Question 17

At any point in time,control compares where the organization is in terms of performance to where it is supposed to be.

Question 18

Sources of cash include sales revenue,short- and long-term loans,the sale of assets,and the issuance of new stock.

Question 19

The most common controls are screening controls.

Question 20

Operations controls monitor input,transformation,and output.

Question 21

Income statements,balance sheets,and audits are examples of the control of

A) physical resources.
B) cybernetics.
C) human resources.
D) organizational complexity.
E) financial resources.

Question 22

Strategic control in global organizations is the same as domestic organizations.

Question 23

Universities value the image and reputation they present to the public.A rogue professor making outrageous comments on social media can seriously damage a school's reputation.It is much easier to implement media polices that prevent damage,than it is to try and fix the damage that has already been done.The media policies help

A) minimize costs.
B) limit the accumulation of errors.
C) adapt to the environmental change.
D) cope with wide spans of management.
E) cope with government regulation.

Question 24

Toyota is designing a new car.At the same time it is planning the recycling abilities of the parts.Toyota is effectively integrating planning and control processes.

Question 25

Quality control is one type of ____ control.

A) strategic
B) structural
C) operations
D) financial
E) tactical

Question 26

The Sarbanes-Oxley Act,passed after the fall of Enron and Arthur Andersen,requires accounting firms to separate the auditing function from the consulting function.This example illustrates

A) organizational complexity.
B) how changing conditions are influenced by innovation.
C) why control is necessary to reduce the accumulation of errors.
D) how control helps organizations respond to changing standards.
E) All of these choices

Question 27

Organizational control is

A) the regulation of management activities to increase leadership.
B) the regulation of organizational activities to facilitate goal attainment.
C) the system that monitors and manages via a self-regulating mechanism.
D) a mechanism for maintaining the status quo.
E) a device for determining where the organization should be at some future time.

Question 28

The purpose of control is to

A) determine where the organization should be at some point in the future.
B) assess organizational performance relative to some desired goal.
C) determine how to structure the organization so as to carry out organizational plans.
D) get the organization's employees to work toward organizational goals.
E) verify that the organization's strategy is appropriate for its environment.

Question 29

If objective data are available,they will provide more useful information than will mere subjective impressions.

Question 30

As the number of things being controlled by the organization increases,the likelihood that employees will resist those controls tends to decrease.

Question 31

Internal audits are not as effective as external audits.

Question 32

Bureaucratic control focuses on enhanced performance that exceeds minimum acceptable standards.

Question 33

Decentralized control relies heavily on self-control by the organization's employees.

Question 34

Information systems are an essential element of strategic control.

Question 35

The planning and controlling functions are interrelated.

Question 36

The basic purpose of control is

A) to cope with organizational complexity.
B) to adapt to environmental changes.
C) to minimize costs.
D) to limit the accumulation of error.
E) All of these choices

Question 37

Bureaucratic control is outdated and not effective any more.

Question 38

In 2015,the Chinese stock market had a major decline that spread around the world.Companies with financial controls,that foresaw a major adjustment coming,accumulated cash and were prepared to buy back their own shares at low prices and help prevent their stock from sliding down further.The controls helped the company

A) cope with organizational complexity.
B) adapt to environmental change.
C) limit the accumulation of errors.
D) minimize costs.
E) cope with multiple control standards.

Question 39

Managers make a surprisingly large number of decisions based on inaccurate information.

Question 40

A properly designed control system is important to an organization because it can be used to

A) maximize costs.
B) anticipate,monitor,and respond to changing circumstances.
C) modify inappropriate organizational focus.
D) modify organizational standards.
E) reduce resistance to change.

Question 41

Secretary of Defense,Gates,shifted the pentagon's budget from expensive,high tech weapon systems to timely,responsive systems.Small defense contractors were more responsive to the change and won more contracts.In this case ____ control helped the small companies.

A) structural
B) hierarchical
C) strategic
D) managerial
E) operations

Question 42

Apple iPhones are notorious for cracked screens.When a customer brings one in to an iStore,the employee checks the customer records and may replace the screen for free.Which step in the control process does this represent?

A) Taking corrective action
B) Measuring performance
C) Comparing performance to standards
D) Establishing performance standards
E) Setting goals

Question 43

Google partnered with Nielsen Co.to poll users about ads on Google+.Nielsen then packaged the information for advertisers.This was a response to advertiser complaints about the effectiveness of ads on the social network.This indicates that Google is placing an emphasis on ____ controls.

A) structural
B) hierarchical
C) strategic
D) managerial
E) operations

Question 44

eBay partnered with Nielsen Co.to poll users about ads on eBay.Nielsen then packaged the information for advertisers.This was a response to advertiser complaints about the effectiveness of ads on the Internet.Verifying ad effectiveness of other companies before buying ad space on eBay is a ____ control for the businesses.

A) screening
B) preliminary
C) concurrent
D) postaction
E) feedback

Question 45

Businesses that use H-form or M-form organizational design may have several ____ who are responsible for helping line managers with their control functions,for coordinating the organization's overall control system,and for gathering and assimilating relevant information.

A) ombudsmen
B) facilitators
C) change agents
D) controllers
E) control champions

Question 46

Thousands of people audition each year to be contestants on American Idol.The audition is an example of a ____ control.

A) screening
B) preliminary
C) concurrent
D) postaction
E) feedback

Question 47

The ____ at McDonald's fast-food restaurants is to fill each order within 90 seconds and to have no customer wait longer than 3.5 minutes.

A) structural goal
B) physical resource control
C) financial control
D) corrective strategy
E) control standard

Question 48

After evaluation,an appropriate decision may be to

A) raise standards.
B) do nothing.
C) correct the deviation.
D) lower standards.
E) Do any of these choices

Question 49

To the extent possible,standards used for control purposes should be derived from

A) historical data.
B) time-series data.
C) external data.
D) organizational goals.
E) production indices.

Question 50

Managing receivables to make sure customers are paying their bills on time is an example of the need for ____ control.

A) financial
B) information
C) physical
D) human
E) strategic

Question 51

Anu is comparing the performance of her small landscaping business against the standards she established.When she has finished her comparisons,any of the following actions may be appropriate EXCEPT

A) correct deviations as required.
B) maintain the status quo.
C) increase the control standards.
D) eliminate the control if things went as planned.
E) decrease the control standards.

Question 52

McDonald's fast-food restaurants aim to fill each order within 90 seconds and to have no customer wait longer than 3.5 minutes.This is derived from the company's

A) historical data.
B) time-series data.
C) external data.
D) organizational goals.
E) production indices.

Question 53

During episodes of the Biggest Loser,contestants compete to lose weight and stay at the ranch,because someone leaves each week.This is an example of a ____ control.

A) screening
B) preliminary
C) postaction
D) cybernetic
E) yes-no

Question 54

To what part of a system are preliminary controls applied?

A) Resources
B) Transformation processes
C) Outputs
D) Feedback elements
E) Subsystems

Question 55

Standards used in organizational control are most like

A) policies.
B) strategies.
C) goals.
D) rules.
E) standing plans.

Question 56

The last step in the control process is to

A) establish standards.
B) determine the need for corrective action.
C) compare performance against standards.
D) measure performance.
E) maintain the status quo.

Question 57

Company websites monitor where viewers look,how long they stay on a page,and the actions they take on the website.This gives companies a lot of information about their customers and viewers.It also represents which step in the control process?

A) establish standards
B) determine the need for corrective action
C) compare performance against standards
D) measure performance
E) change control process

Question 58

Everyone working or volunteering for Girl Scouts has a background check before they can work with girls or handle money.What kind of operations control is this?

A) Preliminary
B) Feedback
C) Concurrent
D) Screening
E) Yes-no

Question 59

The credit crisis and the Federal Reserve's response to it faced criticism from Congress.The Treasury Department requested a review of the central bank's structure and governance.There is now broad support for auditing the Fed using the Government Accountability Office.The change in the economic and political environment of the Fed means the Fed needs to adapt its ____ control.

A) structural
B) hierarchical
C) strategic
D) managerial
E) operations

Question 60

A college admissions board required students to have certain grade point averages and SAT scores to be accepted at the school.What form of operations control do these requirements represent?

A) Screening
B) Preliminary
C) Postaction
D) Cybernetic
E) Yes-no

Question 61

The percentage of graduates who find a job within six months of graduation is a ____ control for colleges and universities.

A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Question 62

Screening controls

A) take place during the transformation process.
B) involve interviewing potential employees.
C) are the same as preliminary control.
D) determine organizational flexibility.
E) determine accuracy of organizational standards.

Question 63

The ____ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used.

A) operating
B) capital expenditure
C) revenue
D) cash-flow
E) nonmonetary

Question 64

Which of the following is NOT a major form of operations control discussed in the text?

A) Preliminary
B) Screening
C) Postaction
D) Functional
E) None of these choices

Question 65

Which of the following is NOT a type of operating budget?

A) Production
B) Sales
C) Expense
D) Profit
E) Revenue

Question 66

Budgets

A) help managers coordinate resources.
B) help define standards for control.
C) provide guidelines about resources.
D) enable the evaluation of the performance of managers.
E) All of these choices

Question 67

Which of the following statements does NOT describe a weakness associated with budgeting?

A) Some managers apply budgets too rigidly.
B) Developing budgets can be very time consuming.
C) Budgets link planning and controlling.
D) Budgets may limit innovation and change.
E) Budgets may make it impossible to procure funds to take advantage of an unexpected opportunity.

Question 68

Postaction control is most appropriate when the

A) time between goal setting and attainment is short.
B) product being produced is nonperishable.
C) product being produced is simple and routine.
D) production process is very complicated.
E) volume of product output is extremely large.

Question 69

Amazon asks customers to rate their experience with the product and service.This is an example of ____ control.

A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Question 70

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results during legislative debate,the politicians are using ____ control.

A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Question 71

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan,tuition and fees,alumni contributions,and research grants.This is an example of a(n)____ budget.

A) revenue
B) output
C) capital expenditures
D) balance sheet
E) cash-flow

Question 72

At the end of each fiscal year,managers note in their performance reports if they are under budget.This is an example of a(n)____control.

A) labor
B) operations
C) information
D) finance
E) revenue

Question 73

As the product being produced becomes more complex,which of the following types of operations controls would logically become more important?

A) Preliminary
B) Screening
C) Postaction
D) Preliminary
E) Feedback

Question 74

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results after the passage of legislation,the politicians are using ____ control.

A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Question 75

Deirdre is a freelance editor.She knows how many chapters she needs to edit and approximately how long each chapter takes.She is calculating what she needs to do to meet her next deadline.She is making a ____ budget.

A) labor
B) production
C) space
D) balance sheet
E) capital expenditure

Question 76

A plant manager is told that she has 8,000 labor hours to allocate in a week.This is an example of a(n)____ budget.

A) operations
B) financial
C) nonmonetary
D) output
E) expense

Question 77

Which of the following is NOT a type of financial budget?

A) Cash-flow
B) Capital expenditure
C) Balance sheet
D) Cash
E) Profit

Question 78

Once a year Boy Scout troops submit financial reports describing income and expenditures.This is an example of ____ control.

A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Question 79

Which of the following is a type of financial budget that deals with forecasting the organization's assets and liabilities in the event all other budgets are met?

A) Cash-flow
B) Liquidity
C) Capital expenditure
D) Balance sheet
E) Pro forma

Question 80

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians "float an idea" by having a staff member leak it to the press to gauge reaction,the politician's staff is using ____ control.

A) screening
B) preliminary
C) postaction
D) cybernetic
E) yes-no