Question 1

As the product being produced becomes more complex,which of the following types of operations controls would logically become more important?
A)Postaction
B)Structural
C)Screening
D)Preliminary
E)Financial

Accepted Answer

The answer of As the product being produced becomes more...

Question 2

A(n)____ compares different elements of a balance sheet and / or an income statement to one another.
A)income statement
B)balance sheet
C)internal audit
D)operations budget
E)ratio analysis

Accepted Answer

Ratio analysis involves comparing different elements of a balance sheet and/or income statement to calculate certain ratios that provide insights into the financial health and performance of the company. Thus, the best choice is E, ratio analysis.

Question 3

Which of the following financial documents shows a listing of all the organization's assets and liabilities at a given point in time?
A)Balance sheet
B)Balance sheet budget
C)Income statement
D)Revenue budget
E)Capital expenditures budget

Accepted Answer

The balance sheet is a financial statement that shows an organization's financial position by listing all its assets and liabilities at a given point in time. It provides a snapshot of the organization's financial health and is an important tool for decision-making.

Question 4

Which of the following is a characteristic of screening controls?
A)Take place during the transformation process
B)Involve interviewing potential employees
C)Are the same as preliminary controls
D)Determine organizational flexibility
E)Determine accuracy of organizational standards

Accepted Answer

Screening controls occur during the transformation process to ensure that standards are being met as operations are carried out.

Question 5

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan,tuition and fees,alumni contributions,and research grants.This is an example of a(n)____ budget.
A)operations
B)capital expenditures
C)nonmonetary
D)output
E)revenue

Accepted Answer

A revenue budget projects the expected income or revenue from various sources. The University of Michigan's budget is focused on projecting its expected income from sources such as state funding, tuition, donations, and research grants, which makes it a revenue budget.

Question 6

If Suzlon Energy Ltd.wants to focus on the strength of its wind-turbine division,it will use
A)liquidity ratios.
B)balance sheet ratios.
C)return on investments.
D)operating ratios.
E)debt ratios.

Accepted Answer

Operating ratios analyze an organization’s operational efficiency and performance, such as gross margin and inventory turnover. These ratios help assess how well a specific division, such as wind-turbine, is performing and identify areas for improvement. Therefore, using operating ratios can help Suzlon Energy Ltd. focus on the strength of its wind-turbine division.

Question 7

Preliminary control can be used with ____ resources.
A)human
B)financial
C)physical
D)information
E)All of these.

Accepted Answer

Preliminary control can be used with all types of resources including human, financial, physical, and information. This type of control involves planning and taking proactive measures to prevent problems or deviations from occurring in the first place. It can be applied to any resource or aspect of a business to ensure that operations run smoothly and efficiently.

Question 8

A company that carefully evaluates job applicants is using ____ control.
A)screening
B)cybernetic
C)postaction
D)preliminary
E)yes-no

Accepted Answer

Preliminary control involves evaluating inputs, such as job applicants, before they become part of the organization.

Question 9

Although many organizations have moved away from this practice,traditionally organization budgets were developed by
A)the controller acting alone.
B)the controller and top managers.
C)all managers.
D)all employees.
E)None of these.

Accepted Answer

Traditionally, organization budgets were developed by the controller and top managers working together. This approach ensured that there was input from both the financial perspective and from those with operational experience and knowledge. While some organizations may still use a top-down approach with the controller taking the lead, it is generally recognized that involving all managers, and sometimes even employees, in the budgeting process leads to a more comprehensive and accurate budget.

Question 10

Everyone working or volunteering for Girl Scouts has a background check before they can work with girls or handle money.This is part of a
A)screening control.
B)preliminary control.
C)postaction control.
D)human resources control.
E)financial resources control.

Accepted Answer

The answer of Everyone working or volunteering for Girl Scouts...

Question 11

Which of the following is NOT a major form of operations control discussed in the text?
A)Preliminary
B)Screening
C)Postaction
D)Functional
E)All of these are major forms of operations control.

Accepted Answer

Preliminary, screening, and postaction are all major forms of operations control discussed in the text. Functional control, however, was not mentioned as a major form of operations control.

Question 12

Apple iPhones are notorious for cracked screens.When a customer brings one in to an iStore,the employee checks the customer records and may replaces the screen for free.Which step in the control process does this represent?
A)Taking corrective action
B)Measuring performance
C)Comparison of performance to standards
D)Setting performance standards
E)Goal setting

Accepted Answer

Taking corrective action is the step in the control process that involves addressing any deviations from the standards and making changes to improve performance. In this case, replacing the cracked screen for free is a corrective action taken by the iStore employee to address the customer's issue with their iPhone.

Question 13

Where would you expect to find the following information: "XYZ Corporation has $746 million in assets and $593 million in liabilities on October 1,2012?"
A)Balance sheet
B)Current liability
C)Fixed asset
D)Net income
E)Stockholder's equity

Accepted Answer

This information pertains to the financial position of XYZ Corporation, which is typically reported on the balance sheet. The balance sheet outlines the assets, liabilities, and stockholder's equity of a company at a specific point in time.

Question 14

Retained earnings are part of ____ control of an organization.
A)financial
B)structural
C)operating
D)interim
E)nonmonetary

Accepted Answer

Retained earnings are a financial control mechanism of the organization. They represent the portion of profits that are kept by the company rather than distributed as dividends to shareholders. Retained earnings can be used to finance future growth and investment opportunities, thereby helping to ensure the financial stability and long-term success of the organization.

Question 15

Postaction controls are applied to what part of a system?
A)Resources
B)Transformation processes
C)Subsystems
D)Controller
E)Outputs

Accepted Answer

Postaction controls are applied to the outputs of a system to ensure that the final results meet the desired standards and objectives.

Question 16

A plant manager is told that she has 15 workers,for 6 hours a day,five days a week.This is part of a(n)____ budget.
A)capital expenditure
B)master
C)space
D)labor
E)personnel

Accepted Answer

The given budget is related to labor as it mentions the number of workers and the hours they will work. Therefore, the correct choice is D. The other options are not relevant to this specific budget. A capital expenditure budget would focus on investments in assets, whereas a master budget covers all aspects of the company's finances. A space budget relates to expenses associated with building and maintaining office or warehouse space. A personnel budget would cover expenses related to salaries, benefits, and training of employees across the organization.

Question 17

Amazon asks customers to rate their experience with the product and service.This is an example of ____ control.
A)human resources
B)financial
C)screening
D)postaction
E)preliminary

Accepted Answer

Postaction control involves monitoring and evaluating the results of an activity or process after it has been completed. In this case, Amazon is assessing the customer's experience after they have received the product and service, which falls under postaction control.

Question 18

Which of the following statements does NOT describe a weakness associated with budgeting?
A)Some manager apply budgets too rigidly.
B)Developing budgets can be very time consuming.
C)Budgets link planning and controlling.
D)Budgets may limit innovation and change.
E)Budgets may make it impossible to procure funds to take advantage of an unexpected opportunity.

Accepted Answer

This statement describes a strength of budgeting, not a weakness. Budgets are a useful tool for linking the planning and controlling functions of management.

Question 19

eBay partnered with Nielsen Co.to poll users about ads on eBay .Nielsen then packaged the information for advertisers.This was a response to advertiser complaints about the effectiveness of ads on the Internet.Verifying ad effectiveness of other companies before buying ad space on eBay is a ____ control for the businesses.
A)preliminary
B)postaction
C)feedback
D)screening
E)concurrent

Accepted Answer

The poll conducted by Nielsen on eBay ads is a preliminary control as it helps businesses to evaluate the effectiveness of their ads before buying ad space on eBay. Preliminary controls are put in place to prevent problems before they occur. In this case, advertisers can avoid wasting money on ineffective ads by using the information provided by Nielsen's poll to make informed decisions about ad placement on eBay.

Question 20

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results during legislative debate,the politicians are using ____ control.
A)preliminary
B)postaction
C)screening
D)financial
E)structural

Accepted Answer

Screening control involves monitoring ongoing activities to ensure they are consistent with established standards or objectives. When politicians use poll results during legislative debates, they are monitoring public opinion to guide their decisions, which aligns with the concept of screening control.

Quiz 14: Basic Elements of Control

As the product being produced becomes more complex,which of the following types of operations controls would logically become more important?

A(n) ____ compares different elements of a balance sheet and / or an income statement to one another.

Which of the following financial documents shows a listing of all the organization's assets and liabilities at a given point in time?

Which of the following is a characteristic of screening controls?

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan,tuition and fees,alumni contributions,and research grants.This is an example of a(n) ____ budget.

If Suzlon Energy Ltd.wants to focus on the strength of its wind-turbine division,it will use

Preliminary control can be used with ____ resources.

A company that carefully evaluates job applicants is using ____ control.

Although many organizations have moved away from this practice,traditionally organization budgets were developed by

Everyone working or volunteering for Girl Scouts has a background check before they can work with girls or handle money.This is part of a

Which of the following is NOT a major form of operations control discussed in the text?

Apple iPhones are notorious for cracked screens.When a customer brings one in to an iStore,the employee checks the customer records and may replaces the screen for free.Which step in the control process does this represent?

Where would you expect to find the following information: "XYZ Corporation has $746 million in assets and $593 million in liabilities on October 1,2012?"

Retained earnings are part of ____ control of an organization.

Postaction controls are applied to what part of a system?

A plant manager is told that she has 15 workers,for 6 hours a day,five days a week.This is part of a(n) ____ budget.

Amazon asks customers to rate their experience with the product and service.This is an example of ____ control.

Which of the following statements does NOT describe a weakness associated with budgeting?

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results during legislative debate,the politicians are using ____ control.