Question 1

The only dimension needed to measure quality is conformance to expectations.

Accepted Answer

Quality is typically defined and measured in terms of excellence and value as well as conformance to expectations.

Question 2

Budgets are used to project costs and revenues, to prioritize and control spending, and to ensure that expenses don't exceed available funds and revenues.

Accepted Answer

Budgets are indeed used to project costs and revenues, prioritize spending, and control expenses. They help organizations plan and allocate resources effectively to achieve their financial goals.

Question 3

The three basic control methods are ____.
A) feedback control, feedforward control, and symmetry control
B) balance control, vertical control, and symmetry control
C) concurrent control, feedback control, and feedforward control
D) feedforward control, presumptive control, and stasis control
E) stasis control, feedback control, and simultaneous control

Accepted Answer

The three basic control methods are concurrent control (ongoing monitoring during the execution of a plan), feedback control (using past performance data to adjust current actions), and feedforward control (proactively adjusting future actions based on anticipated changes or challenges). Options A, B, D, and E are not accurate descriptions of the basic control methods.

Question 4

A manufacturer of automatic locking devices shipped 20,000 devices to a car manufacturer that was unable to use them because of a design flaw. If the manufacturer of the devices waited until the parts were returned before determining why it created unusable component parts, it would be using ____ control.
A) feedforward
B) feedback
C) balanced
D) dynamic
E) concurrent

Accepted Answer

Feedback control is a mechanism for gathering information about performance deficiencies after they occur.

Question 5

In October 2005, Cadbury Schweppes losses caused it to scale back its financial projections for the remainder of the year. These financial projections were ____ for the beverage company.
A) autonomous measurements
B) standards
C) value ratios
D) dependence measurements
E) performance charts

Accepted Answer

Standards are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

Question 6

One significant advantage of economic value added (EVA) is that it clearly states what specific actions managers should or should not take in order to improve financial performance.

Accepted Answer

Unlike many kinds of financial controls, EVA doesn't specify what should or should not be done to improve performance.

Question 7

____ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.
A) Standards
B) Potentials
C) Autonomous goals
D) Degrees of centralization
E) Resource goals

Accepted Answer

Standards are a benchmark used to gauge organizational performance, allowing for an evaluation of whether the performance is acceptable or unacceptable based on established measures. Potentials, autonomous goals, degrees of centralization, and resource goals do not serve as a basis for comparison in measuring organizational performance.

Question 8

Control is a(n) ____ process.
A) standardized, periodic, and cybernetic
B) flexible, intermittent, and automated
C) standardized, periodic, and robotic
D) continuous, flexible, and automated
E) continuous, dynamic, and cybernetic

Accepted Answer

Control is a continuous process that involves ongoing monitoring and adjustments to ensure achievement of desired outcomes. It also requires a dynamic approach that can adapt to changing circumstances and feedback, and it involves the use of cybernetic principles to maintain stability and balance.

Question 9

Control is a cybernetic process because it ____.
A) has a feedback loop
B) is an intermittent process
C) is the first management function
D) uses automated benchmarks
E) can be a completely automated process

Accepted Answer

Cybernetics involves the use of feedback loops to control and regulate systems, making choice A the best option. The other choices are not relevant or accurate in describing why control is a cybernetic process.

Question 10

The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.

Accepted Answer

EVA stands for economic value added.

Question 11

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.
A) evaluating the standard's capacity to enable goal achievement
B) benchmarking competitors
C) listening to customers
D) outsourcing
E) value communications

Accepted Answer

Listening to customers is one means for establishing standards.

Question 12

The basic control process of business begins with ____.
A) either benchmarking or keystoning
B) the establishment of clear standards of performance
C) the comparison of actual performance to expected performance
D) problem identification
E) determining what corrective action will be if actual performance does not equal or exceed expected performance

Accepted Answer

The basic control process of business begins with the establishment of clear standards of performance. This is necessary in order to have a basis for comparison of actual performance to expected performance. Without clear standards, there is no way to determine whether performance is meeting expectations or not. The other options (benchmarking, keystoning, problem identification, and determining corrective action) can come into play after the basic control process has been established.

Question 13

When Marriott decided to improve the quality of service offered to customers, it asked special corporate guests to comment on the good and bad issues of their stay and also to tell what the competition is doing that is better than Marriott. The Marriott acted accordingly. In other words, it used ____.
A) benchmarking
B) data decentralization
C) information processing
D) mirroring
E) comparative criterion

Accepted Answer

Benchmarking is the process of identifying outstanding practices and standards in other companies and adapting them to your company.

Question 14

A report calling for a company to set clear targets to improve fuel economy and to cut factory emissions would want the company to establish emission control ____.
A) autonomous measurements
B) standards
C) value ratios
D) dependence measurements
E) performance predictors

Accepted Answer

Standards are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

Question 15

Customer satisfaction surveys are an accurate and effective way to answer the Balanced Scorecard question: "How do customers see us?"

Accepted Answer

Customer satisfaction surveys are often misleadingly positive.

Question 16

____ is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards.
A) Implementation
B) Goal-setting
C) Control
D) Suboptimization
E) Benchmarking

Accepted Answer

Control is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards. Implementation refers to the process of putting a plan, decision or action into effect. Goal-setting is the process of setting targets or objectives for an organization. Suboptimization refers to the act of optimizing a part of a system or organization without considering the impact on the overall system or organization. Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Question 17

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.
A) Benchmarking
B) Data decentralization
C) Information processing
D) Mirroring
E) Comparative criterion

Accepted Answer

Benchmarking is the process of identifying outstanding practices and standards in other companies and adapting them to your company.

Question 18

The objective of the company that manufactures liqueur is to grow its international business. To determine its success, it compares its current export sales to 1998, the first year it had double digit growth in exports. For this company, the 1998 exporting data provide a(n) ____.
A) autonomous measurement
B) standard
C) value ratio
D) dependence measurement
E) performance predictor

Accepted Answer

Standards are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

Question 19

The three levels of waste minimization are waste disposal, waste reduction, and recycling.

Accepted Answer

Waste minimization has four levels; they are waste disposal, waste treatment, recycle and reuse, and waste prevention and reduction.

Question 20

Companies may determine standards by ____.
A) benchmarking other companies
B) implementing vertical loading
C) using outsourcing
D) taking corrective action
E) doing all of these

Accepted Answer

Standards are also determined by goal achievement and by listening to customers.

Quiz 16: Control

The only dimension needed to measure quality is conformance to expectations.

Budgets are used to project costs and revenues, to prioritize and control spending, and to ensure that expenses don't exceed available funds and revenues.

The three basic control methods are ____.

In October 2005, Cadbury Schweppes losses caused it to scale back its financial projections for the remainder of the year. These financial projections were ____ for the beverage company.

One significant advantage of economic value added (EVA) is that it clearly states what specific actions managers should or should not take in order to improve financial performance.

____ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

Control is a(n) ____ process.

Control is a cybernetic process because it ____.

The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.

The basic control process of business begins with ____.

A report calling for a company to set clear targets to improve fuel economy and to cut factory emissions would want the company to establish emission control ____.

Customer satisfaction surveys are an accurate and effective way to answer the Balanced Scorecard question: "How do customers see us?"

____ is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards.

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.

The objective of the company that manufactures liqueur is to grow its international business. To determine its success, it compares its current export sales to 1998, the first year it had double digit growth in exports. For this company, the 1998 exporting data provide a(n) ____.

The three levels of waste minimization are waste disposal, waste reduction, and recycling.

Companies may determine standards by ____.