Question 1

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

Accepted Answer

The first step in the feedback control system is to establish standards of performance. This sets a benchmark for what is expected and allows for comparison to actual performance later on. Without establishing standards, it is difficult to determine whether performance is acceptable or not.

Question 2

The __________ budget lists planned investments in major assets.
A)capital
B)balance sheet
C)cash
D)revenue
E)profit

Accepted Answer

The capital budget is the budget that lists planned investments in major assets such as property, equipment, and other long-term investments.

Question 3

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

Accepted Answer

Technologies that wirelessly transmit data from remote sensors and GPS devices to computers for analysis are not referred to as biometrics. Biometrics refers to the measurement and analysis of unique physical characteristics or behavior patterns, such as fingerprints or facial recognition, for authentication purposes.

Question 4

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

Accepted Answer

This is an example of open-book management, which involves sharing financial and operational information with employees to give them a better understanding of how the business operates and how their individual contributions can impact the bottom line.

Question 5

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

Accepted Answer

Hierarchical control involves a structured system where responsibility is assigned to specific roles, such as inspectors and supervisors, rather than being distributed among all employees.

Question 6

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

Accepted Answer

The question specifically mentions internal activities and processes, which falls under the internal business processes dimension of the balanced scorecard. This dimension focuses on the efficiency and effectiveness of the company's internal operations and how they contribute to the overall success of the organization.

Question 7

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

Accepted Answer

The answer of According to the control model, after establishing...

Question 8

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

Accepted Answer

Close electronic monitoring can create a sense of distrust and stress in employees, which can ultimately lead to a decrease in productivity and performance. It can also create a negative work environment, which can affect employee morale and overall job satisfaction. Therefore, it is important to strike a balance between monitoring employees and giving them the freedom to do their work without feeling like they are being watched constantly.

Question 9

Which of the following budgets includes anticipated and actual expenses for a responsibility center?
A)Revenue
B)Cash
C)Capital
D)Expense
E)Operating

Accepted Answer

The Expense budget includes anticipated and actual expenses for a responsibility center. The Revenue budget is focused on anticipated revenue, the Cash budget tracks cash inflows and outflows, the Capital budget is focused on capital expenditures, and the Operating budget includes both expenses and revenue but is not specifically related to a responsibility center.

Question 10

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

Accepted Answer

While getting employee opinions can be helpful in identifying areas for improvement and gathering input on the effectiveness of the feedback control system, it is not a necessary or key step in setting up such a system. The other options listed (establishing standards, measuring actual performance, comparing performance to standards, and taking corrective action) are all essential steps in the process.

Question 11

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

Accepted Answer

Decentralized control does not necessarily rely on the quality control department. It is more focused on self-control, peer group, corporate culture, employee selection and socialization.

Question 12

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

Accepted Answer

Feedback is the process of gaining insight into the performance of a system or organization by monitoring regularly, comparing it to established standards, and making necessary improvements. Therefore, feedback plays a crucial role in determining whether performance meets established standards in a control system. The other options may be useful in designing or improving a control system, but they are not directly related to determining whether performance meets established standards.

Question 13

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.

Accepted Answer

The statement accurately reflects the trend during the economic recession when companies cut discretionary spending, such as travel expenses, and managers are now working to keep those expenses from increasing again.

Question 14

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

Accepted Answer

The balance sheet provides information on a company's assets and liabilities at a specific point in time, making it the best choice for Stella to refer to in order to understand her company's financial position. The income statement provides information on a company's revenues and expenses over a period of time and is not relevant to Stella's current need. Activity ratios provide information on a company's efficiency in managing its assets and liabilities, but do not give a full picture of the company's financial position. TQM (Total Quality Management) reports are not related to financial position. The balanced scorecard is a strategic management tool that measures a company's performance in multiple areas, including financial and non-financial measures, but does not provide detailed information on assets and liabilities.

Question 15

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

Accepted Answer

Brad's role, where the budget is developed for him and his responsibility is solely to implement it, is an example of top-down budgeting. In top-down budgeting, decisions and the budget itself are formulated at the top level of the organization and then passed down through the hierarchy for implementation.

Question 16

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

Accepted Answer

Hierarchical control assumes that individuals cannot be trusted to discipline themselves and require a hierarchical structure to maintain control.

Question 17

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

Accepted Answer

The described process of regulating organizational activities to align with established expectations by managers represents organizational control. Budgetary control involves regulating financial activities, feedback control involves using information about past performance to make adjustments, system control involves regulating behavior through standardized policies and procedures, and quality control involves ensuring that products or services meet established standards.

Question 18

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

Accepted Answer

This statement accurately reflects the purpose and effect of zero-based budgeting.

Question 19

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

Accepted Answer

Tammy should calculate the inventory turnover ratio, which measures how quickly inventory is sold and restocked. A low inventory turnover ratio indicates inefficient inventory management and can lead to excess inventory sitting in the warehouse for extended periods, tying up capital and increasing the risk of obsolescence or price markdowns.

Question 20

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

Accepted Answer

Net income divided by sales yields the profit margin on sales, which measures the percentage of each dollar of sales that results in net income.

Quiz 15: Managing Quality and Performance

What is the first step in the feedback control system?

The __________ budget lists planned investments in major assets.

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

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?

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?

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?

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

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

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

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

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

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

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.

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?

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 _______.

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

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.

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

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.

Net income divided by sales yields the _______.