Question 1

A balance sheet budget is a budget that plans and reports investments in major assets to be depreciated over several years.

Accepted Answer

A balance sheet budget is a financial statement that projects the financial position of a company at a specific point in time, showing expected assets, liabilities, and equity, not specifically focusing on investments in major assets to be depreciated.

Question 2

Feedback control focuses on the quantity of an end product or service.

Accepted Answer

Feedback control focuses on monitoring and adjusting processes to ensure that the desired outcomes are achieved, rather than solely on the quantity of an end product or service.

Question 3

Customer service, external business processes, financial performances, and the organization's capacity for learning and growth are the four major perspectives of the balanced scorecard.

Accepted Answer

False

Question 4

The balance sheet shows the firm's financial position with respect to expenses and credits at a specific point in time.

Accepted Answer

The balance sheet shows the firm's financial position with respect to assets, liabilities, and equity at a specific point in time, not expenses and credits.

Question 5

Managers focus on the various elements of the scorecard to set targets, evaluate performance, and guide discussion about what further actions need to be taken.

Accepted Answer

The statement is true, as managers use the scorecard to set targets, evaluate performance, and guide discussions on further actions.

Question 6

The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.

Accepted Answer

The final step of the feedback control model is indeed to do nothing if performance is adequate or to take corrective action if performance is inadequate. This is what ensures continuous improvement and makes the feedback control model an effective tool for managing performance.

Question 7

The level of funds flowing through the organization and the nature of cash disbursements is shown through the capital budget.

Accepted Answer

The capital budget primarily shows the planned spending on long-term investments, such as new projects, equipment, or facilities, rather than the flow of funds or nature of cash disbursements.

Question 8

The fourth step in the control process is comparing actual activities to performance standards.

Accepted Answer

The answer of The fourth step in the control process...

Question 9

Effective management control involves subjective judgment and employee discussions, as well as objective analysis of performance data.

Accepted Answer

Effective management control requires a combination of subjective judgment and employee discussions, along with objective analysis of performance data. It cannot solely rely on objective analysis of data.

Question 10

A process in which lower level managers anticipate their department's resource needs and pass them to top management for approval is called top-down budgeting.

Accepted Answer

The process described is actually bottom-up budgeting, as it starts from lower levels and moves upward for approval. Top-down budgeting would start with top management setting the overall budget and allocating it to lower levels.

Question 11

An expense budget lists forecasted and actual revenues of the organization.

Accepted Answer

An expense budget lists forecasted and actual expenses of the organization, not revenues.

Question 12

Liabilities are the firm's debts, both current and long-term.

Accepted Answer

Liabilities refer to the obligations or debts of a company, which can be either short-term (such as accounts payable) or long-term (such as bonds payable). Therefore, liabilities are indeed the firm's debts, both current and long-term.

Question 13

In most companies, managers rely exclusively on quantitative measures to measure actual performance.

Accepted Answer

Managers typically use a combination of quantitative and qualitative measures to assess performance, as qualitative insights can provide context and understanding that numbers alone may not capture.

Question 14

A standard for performance is included in an organization's overall strategic plan to compare organizational activities against.

Accepted Answer

A standard for performance allows an organization to measure their performance against their goals and objectives. Therefore, it makes sense to include it in the overall strategic plan.

Question 15

A responsibility center is the fundamental unit of analysis for a budget control system.

Accepted Answer

A responsibility center is a budgetary unit responsible for its own revenues, costs, and results. It serves as the primary focus in budgeting, cost control, and performance evaluation. Therefore, it is the fundamental unit of analysis for a budget control system.

Question 16

It is important to create a written Internet policy for an "acceptable use policy" for workplace Internet use.

Accepted Answer

It is important for organizations to create a written Internet policy outlining acceptable use of the Internet at the workplace. This can help prevent issues such as security breaches, loss of productivity, and inappropriate behavior. It also ensures that employees understand the rules and expectations for Internet use in the workplace.

Question 17

The feedback control model is a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization's capacity for learning and growth.

Accepted Answer

The answer of The feedback control model is a comprehensive...

Question 18

Bottom-up budgeting is a process in which lower level managers anticipate their department's resource needs and pass them up to top management for approval.

Accepted Answer

Bottom-up budgeting starts from the lower level of management and involves their active participation in forecasting and budgeting for their area of responsibility. This information is then passed up to top management for review and approval.

Question 19

Effectively controlling an organization requires information about product standards and actual products, as well as actions to correct any deviations from the standards.

Accepted Answer

The answer of Effectively controlling an organization requires information about...

Question 20

The systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets, and standards of performance refers to organizational control.

Accepted Answer

Organizational control involves the systematic process of monitoring and regulating organizational activities to ensure they align with planned goals and standards of performance.

Quiz 18: Managing Quality and Performance