Question 1

Kenneth is comparing market share data for his company's oral care products along with data for top competitors. He is surprised to learn that the company has slipped in market share for some oral care products. Market share data is an example of what type of standard?
A) Tangible standard
B) Intangible standard
C) Objective standard
D) Subjective standard

Accepted Answer

The answer of Kenneth is comparing market share data for...

Question 2

Which of the following is NOT a characteristic that a supervisor looks for when choosing one standard over another as a strategic control point?
A) It should be timely.
B) It should permit economical observation.
C) It should not require written reports and data collection.
D) It should provide for comprehensive control.

Accepted Answer

A supervisor typically looks for a strategic control point that provides comprehensive control, is timely, and permits economical observation. However, a characteristic such as not requiring written reports and data collection is not necessarily a priority and may not be relevant for all control points.

Question 3

While operating a backhoe, Stephen notices that a low-fuel light has just come on. This is an example of which time factor control mechanism?
A) Feedforward
B) Concurrent
C) Feedback
D) Retroactive

Accepted Answer

The low-fuel light coming on while operating the backhoe is a concurrent control mechanism, as it provides real-time information about the current state of the fuel level.

Question 4

Riya performs data analysis on performance reports submitted by institutions of higher education, primarily looking for data entry errors. This is an example of which time factor control mechanism?
A) Feedforward
B) Concurrent
C) Feedback
D) Retroactive

Accepted Answer

Feedback control involves analyzing completed reports to identify and correct errors after the fact.

Question 5

Which of the following is NOT an accurate statement regarding the supervisor's role in controlling through budgets?
A) The budget that most concerns supervisors is usually the departmental expense budget.
B) Supervisors must refer to their budgets to monitor their expenditures during the operation period.
C) If a supervisor notes that actual expenditures for a specific item greatly exceed the budget, the supervisor should wait until the next budget cycle before taking any action.
D) Supervisors should demonstrate the actual need for each amount they request and document their requests with historical data whenever possible.

Accepted Answer

If a supervisor notes that actual expenditures greatly exceed the budget, it is important to take action as soon as possible to avoid further overspending. Waiting until the next budget cycle could result in even greater financial problems. The other statements are accurate regarding the supervisor's role in controlling through budgets.

Question 6

Albert's manufacturing company produces over 1,000 units daily. When reviewing products for defects, he randomly inspects about 10 percent of the items actually produced. This example demonstrates which of the following?
A) Personal observation
B) The exception principle
C) Spot checking
D) Sampling

Accepted Answer

This example demonstrates the concept of sampling, where a small portion of a larger population is selected for inspection or analysis to draw conclusions about the entire population. In this case, Albert selects a random sample of 10% of the units produced to inspect for defects.

Question 7

Supervisors should be careful to choose strategic control points that do NOT significantly:
A) Improve performance.
B) Impede performance.
C) Impede other standards.
D) All of the above.

Accepted Answer

The answer of Supervisors should be careful to choose strategic...

Question 8

A written plan expressed in numerical terms that projects anticipated resources and expenditures for a certain period of time is known as a/n:
A) Budget
B) Projection
C) Time and motion study
D) Utility

Accepted Answer

A budget is a written plan that projects anticipated resources and expenditures for a certain period of time, usually expressed in numerical terms. It helps organizations to plan, monitor, and control their finances effectively. The other options, Projection, Time and motion study, and Utility, do not fully fit the definition given in the question.

Question 9

Time studies are supposed to be:
A) Subjective.
B) Scientific.
C) Objective.
D) The best method of assessment.

Accepted Answer

Time studies are conducted to measure the time taken to perform a particular task or activity. It is important to ensure that the results obtained are unbiased and accurate. Therefore, objective methods are used, which are based on facts and not influenced by personal opinions or feelings. This makes option C the correct choice. Options A and D are incorrect as subjectivity and best methods are not the goals of time studies. Option B is incorrect as time studies are not purely scientific, as they involve human variables that can affect the results.

Question 10

Tangible standards can measure all of the following EXCEPT:
A) Quantity of output.
B) Quality of output.
C) Time spent on providing a service.
D) An organization's reputation.

Accepted Answer

Tangible standards can measure quantitative aspects of output (quantity) and qualitative aspects (quality), as well as time spent on providing a service, but they cannot measure an organization's reputation, which is more subjective and intangible.

Question 11

Ron is establishing a preventative maintenance program at his work where machines are serviced on a regular schedule to prevent breakdowns in the future. This is an example of which time factor control mechanism?
A) Feedforward
B) Concurrent
C) Feedback
D) Retroactive

Accepted Answer

The establishment of a preventative maintenance program is an example of feedforward control, which involves taking proactive measures to prevent problems or errors from occurring in the first place. In this case, Ron is implementing a plan to service machines on a regular schedule to prevent breakdowns from occurring in the future.

Question 12

At Best Facilities Inc., industrial engineers were brought to the assembly line to observe production and to identify ways to improve, eliminate, change, or combine steps to make the job easier and faster. This is an example of what type of study?
A) Concurrent study
B) Control study
C) Motion study
D) Time study

Accepted Answer

The process described in the scenario is a motion study, which involves analyzing the motions and movements required for completing a task and identifying ways to simplify or eliminate unnecessary steps. Concurrent and control studies involve comparing different groups or situations, while a time study involves analyzing the duration of specific tasks.

Question 13

As an accountant for a large marketing company, Conrad uses last year's budget to develop projections for the upcoming annual budget. This is an exmaple of what type of budgeting?
A) Incremental budgeting
B) Operational budgeting
C) Zero-base budgeting
D) Laissez-faire budgeting

Accepted Answer

Incremental budgeting involves using the previous year's budget as a base and making adjustments for the new budget period.

Question 14

Oral and written reports are necessary when:
A) Departments are small.
B) Team members operate in one location.
C) Quick decisions need to be made.
D) Employees work around the clock.

Accepted Answer

Oral and written reports are necessary when employees work around the clock to ensure continuity and effective communication across different shifts.

Question 15

Care 1 Hospital is renowned for it's impeccable reputation and strong employee morale. These types of qualities can best be described as __________ standards.
A) tangible
B) intangible
C) objective
D) subjective

Accepted Answer

Impeccable reputation and strong employee morale are intangible qualities as they cannot be physically measured or observed but are instead based on subjective perceptions and feelings.

Question 16

Cost consciousness should primarily:
A) Consist of crash programs and economy drives.
B) Be considered as an ongoing part of the supervisors' and employees' jobs.
C) Involve no flexibility in establishing budgets.
D) Be a retraining program for all supervisors.

Accepted Answer

Cost consciousness should be considered an ongoing part of the supervisors' and employees' jobs. It should become an essential aspect of the company's culture and reflect in the attitudes and behaviors of everyone who works there. Engaging all employees in fostering cost-conscious attitudes and behaviors ensures that everyone in the organization is responsible for managing costs and improving efficiency. Crash programs, economy drives, and rigid budgeting models may provide short-term cost savings but do not create a sustainable cost-conscious culture within the organization. Additionally, cost-consciousness requires retraining and skill development for employees, but this training does not have to be limited to supervisors.

Question 17

If a cost-cutting order comes down from top management, the supervisor's best response is to:
A) Look for places to reduce expenses with the help of the employees.
B) Hold "pep rallies" with employees.
C) Stop buying any supplies.
D) Follow the directive halfheartedly.

Accepted Answer

The best response for a supervisor when a cost-cutting order comes from top management is to look for places to reduce expenses, but not alone. The supervisor should work with the employees to find ways to reduce expenses without detrimental effects on the quality or productivity of the team. This approach helps to ensure that cost-cutting measures are fair and unbiased, and that the workforce is engaged in finding solutions, which increases their motivation and commitment to the company. Holding "pep rallies" might boost morale temporarily, but it does not address the underlying issue, and could be perceived as trivializing the problem. Stopping buying any supplies is counterproductive and could paralyze daily operations. Following the directive halfheartedly sets a bad example, undermines confidence in leadership, and could lead to further cuts in the future.

Question 18

Which type of control involves keeping watch over raw materials, supplies, work-in-process, and finished goods?
A) Inventory control
B) Quality control
C) Production control
D) Budgetary control

Accepted Answer

Inventory control involves keeping track of raw materials, supplies, work-in-process, and finished goods in order to prevent stockouts and excess inventory. Quality control involves inspecting finished goods to ensure they meet predetermined standards. Production control involves planning and overseeing the actual manufacturing process. Budgetary control involves monitoring and adjusting budgeted expenses.

Question 19

For Carla, a supply chain manager for a consumer goods manufacturer, her primary function is to monitor the flow of raw materials, supplies, work-in-process, and finished goods. This function is otherwise known as:
A) Quality control
B) Production control
C) Inventory control
D) Feedforward control

Accepted Answer

The primary function described in the scenario is inventory control, which involves monitoring the flow of materials and products throughout the supply chain to ensure that the right amount of inventory is maintained at each stage of production. Quality control involves ensuring that products meet certain standards, production control involves monitoring the actual production process, and feedforward control involves taking proactive measures to prevent problems from occurring in the future.

Question 20

While reviewing quality control reports, Jasper looks most closely at performance areas that are significantly higher or lower than what is normally reported. This example demonstrates use of
A) Personal observation
B) Sampling
C) Spot checking
D) The exception principle

Accepted Answer

The exception principle is when an individual focuses on areas that are significantly higher or lower than what is normally reported, which is exactly what Jasper is doing while reviewing the quality control reports.

Quiz 13: Fundamentals of Controlling

Kenneth is comparing market share data for his company's oral care products along with data for top competitors. He is surprised to learn that the company has slipped in market share for some oral care products. Market share data is an example of what type of standard?

Which of the following is NOT a characteristic that a supervisor looks for when choosing one standard over another as a strategic control point?

While operating a backhoe, Stephen notices that a low-fuel light has just come on. This is an example of which time factor control mechanism?

Riya performs data analysis on performance reports submitted by institutions of higher education, primarily looking for data entry errors. This is an example of which time factor control mechanism?

Which of the following is NOT an accurate statement regarding the supervisor's role in controlling through budgets?

Albert's manufacturing company produces over 1,000 units daily. When reviewing products for defects, he randomly inspects about 10 percent of the items actually produced. This example demonstrates which of the following?

Supervisors should be careful to choose strategic control points that do NOT significantly:

A written plan expressed in numerical terms that projects anticipated resources and expenditures for a certain period of time is known as a/n:

Time studies are supposed to be:

Tangible standards can measure all of the following EXCEPT:

Ron is establishing a preventative maintenance program at his work where machines are serviced on a regular schedule to prevent breakdowns in the future. This is an example of which time factor control mechanism?

At Best Facilities Inc., industrial engineers were brought to the assembly line to observe production and to identify ways to improve, eliminate, change, or combine steps to make the job easier and faster. This is an example of what type of study?

As an accountant for a large marketing company, Conrad uses last year's budget to develop projections for the upcoming annual budget. This is an exmaple of what type of budgeting?

Oral and written reports are necessary when:

Care 1 Hospital is renowned for it's impeccable reputation and strong employee morale. These types of qualities can best be described as __________ standards.

Cost consciousness should primarily:

If a cost-cutting order comes down from top management, the supervisor's best response is to:

Which type of control involves keeping watch over raw materials, supplies, work-in-process, and finished goods?

For Carla, a supply chain manager for a consumer goods manufacturer, her primary function is to monitor the flow of raw materials, supplies, work-in-process, and finished goods. This function is otherwise known as:

While reviewing quality control reports, Jasper looks most closely at performance areas that are significantly higher or lower than what is normally reported. This example demonstrates use of