Question 1

Twice daily, factory workers at Fabulous Skeins and Yarn select random samples from the production runs and test them for quality, rejecting runs if too many samples fall outside a standard range of acceptability. These workers are engaged in statistical process control.

Accepted Answer

The question is describing statistical process control, a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability. If quality is not acceptable, production is stopped to allow corrective measures.

Question 2

Unlike the ISO 9000 series, the ISO 14000 series identifies standards for environmental performance.

Accepted Answer

Unlike the ISO 9000 series, the ISO 14000 series identifies standards for environmental performance.

Question 3

Which of the following is a step in the control process?

Accepted Answer

The four control process steps are (1) establish standards; (2) measure performance; (3) compare performance to standards; and (4) take corrective action, if necessary.

Question 4

Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Accepted Answer

Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Question 5

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed.

Accepted Answer

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed.

Question 6

Rural Internet Services, applying TQM, restructured its service call procedures and eliminated some steps involved so that employees can finish each call faster. Rural Internet Services is attempting to reduce cycle time.

Accepted Answer

TQM puts emphasis on increasing the speed with which an organization's operations and processes can be performed. TQM aims to achieve reduced cycle time, or reduction in steps in a work process.

Question 7

The control process begins with establishing standards.

Accepted Answer

The four control process steps are (1) establish standards; (2) measure performance; (3) compare performance to standards; and (4) take corrective action, if necessary.

Question 8

Productivity is defined by the formula of outputs divided by inputs for a specified period of time.

Accepted Answer

Productivity is defined by the formula of outputs divided by inputs for a specified period of time.

Question 9

________ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

Accepted Answer

Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

Question 10

A balance sheet summarizes an organization's overall financial worth, or its assets and liabilities, at a specific point in time.

Accepted Answer

A balance sheet summarizes an organization's overall financial worth, or its assets and liabilities, at a specific point in time.

Question 11

Roberta, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2 percent through additional training for her staff. She is engaged in

Accepted Answer

Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. Roberta is undertaking this process with customer complaints, which are one measure of performance.

Question 12

Controls allow top management to decentralize decision making at lower levels within the organization.

Accepted Answer

Controls allow top management to decentralize decision making at lower levels within the organization and to encourage employees to work together in teams.

Question 13

Which of the following best describes ERP systems?

Accepted Answer

Many companies have implemented enterprise resource planning (ERP) software systems, information systems for integrating virtually all aspects of a business, helping managers stay on top of the latest developments.

Question 14

Charlotte is trying to measure her salon's productivity during the first quarter. For this period, she should divide ________ by the costs of her staff, loans, materials, and utility bills.

Accepted Answer

Productivity is defined by the formula of outputs divided by inputs for a specified period of time. Outputs are all the goods and services produced. Inputs are not only labor but also capital, materials, and energy.

Question 15

Managers can increase overall productivity by increasing the efficiency of all the following EXCEPT

Accepted Answer

Managers can increase overall productivity by making substitutions or increasing the efficiency of any one element: labor, capital, materials, or energy.

Question 16

Which of the following is a primary function of management?

Accepted Answer

The four management functions are planning, organizing, leading, and controlling.

Question 17

Productivity equals

Accepted Answer

Productivity is defined by the formula of outputs divided by inputs for a specified period of time. Outputs are all the goods and services produced. Inputs are not only labor but also capital, materials, and energy.

Question 18

Enright Industrial Leasing has effective control processes, allowing its managers to discover ________ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Accepted Answer

One reason control is needed is that it helps you to discover irregularities and errors. Cost overruns, manufacturing defects, employee turnover, bookkeeping errors, and customer dissatisfaction may be tolerable in the short run. But in the long run, they can bring about even the downfall of an organization.

Question 19

An income statement summarizes an organization's financial results over a specified period of time, such as a quarter or a year.

Accepted Answer

The income statement summarizes an organization's financial results, its revenues and expenses, over a specified period of time, such as a quarter or a year.

Question 20

Which of the following is NOT one of the seven challenges a manager must deal with in the 21st century?

Accepted Answer

A manager in the 21st century will operate in a complex environment in which he or she will need to deal with seven challenges, managing for (1) competitive advantage, (2) diversity, (3) globalization, (4) information technology, (5) ethical standards, (6) sustainability, and (7) personal happiness and life goals.

Quiz 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

Twice daily, factory workers at Fabulous Skeins and Yarn select random samples from the production runs and test them for quality, rejecting runs if too many samples fall outside a standard range of acceptability. These workers are engaged in statistical process control.

Unlike the ISO 9000 series, the ISO 14000 series identifies standards for environmental performance.

Which of the following is a step in the control process?

Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed.

Rural Internet Services, applying TQM, restructured its service call procedures and eliminated some steps involved so that employees can finish each call faster. Rural Internet Services is attempting to reduce cycle time.

The control process begins with establishing standards.

Productivity is defined by the formula of outputs divided by inputs for a specified period of time.

________ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

A balance sheet summarizes an organization's overall financial worth, or its assets and liabilities, at a specific point in time.

Roberta, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2 percent through additional training for her staff. She is engaged in

Controls allow top management to decentralize decision making at lower levels within the organization.

Which of the following best describes ERP systems?

Charlotte is trying to measure her salon's productivity during the first quarter. For this period, she should divide ________ by the costs of her staff, loans, materials, and utility bills.

Managers can increase overall productivity by increasing the efficiency of all the following EXCEPT

Which of the following is a primary function of management?

Productivity equals

Enright Industrial Leasing has effective control processes, allowing its managers to discover ________ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

An income statement summarizes an organization's financial results over a specified period of time, such as a quarter or a year.

Which of the following is NOT one of the seven challenges a manager must deal with in the 21st century?