Question 1

At the output stage, managers usually utilize ________ control.
A) MBO
B) bureaucratic
C) feedforward
D) feedback

Accepted Answer

At the output stage, managers use feedback control to provide information about customers' reactions to goods and services so that corrective action can be taken if necessary.

Question 2

Management by objectives is a mechanism of control with ________ organizational control systems.
A) input
B) clan
C) output
D) behavior

Accepted Answer

Management by objectives is a mechanism of control for behavior control.Refer: Figure 8.3

Question 3

A mechanism of control utilized in organizational culture is ________.
A) direct supervision
B) management by objectives
C) socialization
D) organizational goals

Accepted Answer

Mechanisms of control for organizational culture include values, norms, and socialization.Refer: Figure 8.3

Question 4

The manager of Inkman, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control.
A) feedforward
B) output
C) input
D) MBO

Accepted Answer

Inkman is tracking an output (sales per customer) and will alter its product mix accordingly. This is a form of output control.

Question 5

The standard of performance that measures efficiency at the corporate level of the organization is known as ________.
A) cost of goods sold
B) capital costs
C) net sales
D) operating costs

Accepted Answer

At the corporate level, a standard of performance that measures efficiency is operating costs, the actual costs associated with producing goods and services, including all employee-related costs.

Question 6

The final step in the control process is to ________.
A) evaluate results and initiate corrective action
B) measure actual performance
C) compare actual performance to the standards
D) measure the standards of performance

Accepted Answer

The final step in the control process is to evaluate the results and bring about change as appropriate.

Question 7

Brandon, the manager of Flipflop Footwear, checked the weekly records and discovered that the number of shoes produced in one week by 20 employees was 250 against the set target of 220 shoes. With reference to the control process, Brandon is ________.
A) establishing the standards of performance
B) measuring the actual level of performance of employees
C) comparing the actual performance against chosen standards of performance
D) evaluating the result of the set standards

Accepted Answer

After measuring the actual level of performance of employees, the next step of the control process is to compare the actual performance against chosen standards of performance.

Question 8

Danny, the manager of Wader Shoes, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Danny is ________.
A) establishing the standards of performance
B) measuring the actual level of performance of employees
C) evaluating the result of the set standards
D) initiating corrective actions

Accepted Answer

If managers find out that the level of performance is unacceptable, they must try to change how work activities are performed to solve the problem.

Question 9

Ben, the production manager of Pace Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Ben is ________.
A) establishing the standards of performance
B) measuring the actual level of performance of employees
C) comparing the actual performance against chosen standards of performance
D) evaluating the result of the set standards

Accepted Answer

At step 1 in the control process, managers decide on the standards of performance, goals, or targets that they will use in the future to evaluate the performance of the entire organization or part of it.

Question 10

The managers of Foodex, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Foodex are ________.
A) establishing the standards of performance
B) measuring the actual level of performance of employees
C) comparing the actual performance against chosen standards
D) evaluating the result of the set standards

Accepted Answer

Once managers have decided which standards or targets they will use to evaluate performance, the next step in the control process is to measure actual performance. In practice, managers can measure or evaluate two things: (1) the actual outputs that result from the behavior of their members and (2) the behaviors themselves.

Question 11

The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control.
A) feedforward
B) bureaucratic
C) concurrent
D) feedback

Accepted Answer

At the conversion stage, concurrent control gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise.

Question 12

Beswick Widget Ltd. sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Beswick is using ________ control.
A) feedforward
B) feedback
C) MBO
D) bureaucratic

Accepted Answer

Beswick is attempting to learn about changes in customers' tastes so that it can increase or decrease production of products as necessary. Thus, this is feedback control. Feedback control is used to provide information about customers' reactions to goods and services so corrective action can be taken if necessary.

Question 13

Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Brennan Manufacturing is using ________ control.
A) feedforward
B) concurrent
C) MBO
D) feedback

Accepted Answer

At the output stage, managers use feedback control to provide information about customers' reactions to goods and services so that corrective action can be taken if necessary. A feedback control system that monitors the number of customer returns alerts managers when defective products are being produced.

Question 14

An organization's net income before taxes divided by the total assets of the organization is known as ________.
A) gross profit margin
B) return on investment
C) the debt-to-assets ratio
D) days sales outstanding

Accepted Answer

Return on investment = net income before taxes/total assets.Refer: Table 8.1

Question 15

The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is ________.
A) measuring actual performance
B) comparing actual performance to the standards
C) initiating corrective action
D) measuring standards of performance

Accepted Answer

Step 3 of the control process compares actual performance against chosen standards of performance. Managers evaluate whether, and to what extent, the performance of the organization deviates from the set standards of performance.

Question 16

Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Hanover is utilizing ________ control.
A) feedforward
B) feedback
C) bureaucratic
D) MBO

Accepted Answer

Managers use feedforward control to anticipate problems before they arise so that problems do not occur later. The development of management information systems promotes feedforward control that gives managers timely information about changes in the task and general environments that may impact their organization later on.

Question 17

The manager of Triks Burgers keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of Triks Burgers is utilizing ________ control.
A) output
B) bureaucratic
C) input
D) MBO

Accepted Answer

Triks Burgers is tracking an output (number of customers served) and will adjust its production process to try to match demand. This is a form of output control. All managers develop a system of output control for their organizations. First they choose the goals that they think will best measure efficiency, quality, innovation, and responsiveness to customers. Then they measure to see whether the performance goals and standards are being achieved at the corporate, divisional, functional, and individual employee levels of the organization.

Question 18

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) _______ ratio.
A) activity
B) leverage
C) profit
D) liquidity

Accepted Answer

Profit ratios measure how efficiently managers are using the organization's resources to generate profits.

Question 19

The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is ________.
A) gross profit margin
B) the debt-to-assets ratio
C) the inventory turnover ratio
D) return on investment

Accepted Answer

Return on investment (ROI) is the most commonly used financial performance measure because it allows managers of one organization to compare performance with that of other organizations. ROI lets managers assess an organization's competitive advantage.

Question 20

The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control.
A) feedforward
B) MBO
C) feedback
D) concurrent

Accepted Answer

At the conversion stage, concurrent control gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise, be it a defective batch of inputs, a machine that is out of alignment, or a worker who lacks the skills necessary to perform a task efficiently.

Quiz 8: Control, Change, and Entrepreneurship

At the output stage, managers usually utilize ________ control.

Management by objectives is a mechanism of control with ________ organizational control systems.

A mechanism of control utilized in organizational culture is ________.

The manager of Inkman, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control.

The standard of performance that measures efficiency at the corporate level of the organization is known as ________.

The final step in the control process is to ________.

Brandon, the manager of Flipflop Footwear, checked the weekly records and discovered that the number of shoes produced in one week by 20 employees was 250 against the set target of 220 shoes. With reference to the control process, Brandon is ________.

Danny, the manager of Wader Shoes, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Danny is ________.

Ben, the production manager of Pace Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Ben is ________.

The managers of Foodex, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Foodex are ________.

The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control.

Beswick Widget Ltd. sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Beswick is using ________ control.

Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Brennan Manufacturing is using ________ control.

An organization's net income before taxes divided by the total assets of the organization is known as ________.

The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is ________.

Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Hanover is utilizing ________ control.

The manager of Triks Burgers keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of Triks Burgers is utilizing ________ control.

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) _______ ratio.

The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is ________.

The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control.