Question 1

Which of the following is NOT one of the characteristics of an effective control system?
A) Developed and implemented by top management
B) Flexibility
C) Integrated with planning
D) Developed with accurate input
E) Timeliness

Accepted Answer

While top management involvement in developing and implementing a control system is important, it is not a defining characteristic of an effective control system. The other characteristics listed (flexibility, integration with planning, accurate input, and timeliness) are all important factors in creating an effective control system.

Question 2

Which of the following is NOT one of the areas on which strategic control should focus?
A) Structure
B) Leadership
C) Audits
D) Human resources
E) Technology

Accepted Answer

The three areas on which strategic control should focus include Structure, Leadership, and Human resources. Technology is also an important area, but it is often incorporated into the other areas rather than being a separate focus for strategic control. Audits may be important for identifying areas of improvement, but they are not a primary focus for strategic control. Therefore, the answer is C.

Question 3

At the beginning of the planning-controlling process,planning
A) plays a major role in shaping the control process.
B) is temporarily unrelated to the control process.
C) is shaped by the control system requirements.
D) decreases organizational flexibility.
E) increases the accuracy of organizational processes.

Accepted Answer

Planning plays a major role in shaping the control process as it sets the objectives, identifies the resources needed, and establishes a roadmap to achieve the goals. The control process then monitors the progress of the plan and ensures that it stays on track towards achieving the desired outcomes.

Question 4

What characteristic of effective control systems is lacking when a control system reports production output as being better than average,satisfactory,marginal,or unsatisfactory?
A) Objectivity
B) Flexibility
C) Accuracy
D) Timeliness
E) Integration with planning

Accepted Answer

The characteristic of objectivity is lacking because the terms "better than average," "satisfactory," "marginal," and "unsatisfactory" are subjective and can be interpreted differently depending on the individual or department. Objectivity refers to the use of verifiable data and facts to evaluate performance.

Question 5

A nonprofit had volunteers show up to paint a building.Unfortunately the paint ran out before the project was complete,so the volunteers went home early.If the nonprofit had planned better it would have known: how many volunteers to expect,if more paint was needed how long it would take to get the paint,and to have materials ready for an additional project.The nonprofit's control process needed
A) timeliness.
B) accuracy.
C) ​integration with planning.
D) flexibility.
E) ​all of the above.

Accepted Answer

The nonprofit's control process lacked timeliness (to ensure actions are taken at the right time), accuracy (to correctly estimate the needed resources), integration with planning (to align resources with the planned activities), and flexibility (to adapt to unforeseen circumstances such as running out of paint or having extra volunteers).

Question 6

The term objective as it relates to controls means that the controls
A) can be used to identify hidden costs.
B) are quantifiable.
C) are realistic.
D) are focused on the right measures.
E) provide information when needed.

Accepted Answer

The term objective as it relates to controls means that the controls are quantifiable. This means that they can be measured and evaluated in terms of their effectiveness and efficiency. Other choices such as "realistic" and "focused on the right measures" may also be important aspects of effective controls, but they do not directly relate to the term "objective" in this context.

Question 7

The level of control designed to ensure that the organization meets its goals is ____ control.
A) operations
B) organizational
C) functional
D) strategic
E) administrative

Accepted Answer

Strategic control is designed to ensure that an organization meets its goals through monitoring and adjusting its strategic plans and direction. This type of control involves evaluating the overall effectiveness of an organization's strategy and making necessary adjustments to keep the organization on track towards achieving its long-term goals.

Question 8

One barrier to effective communication is the filtering of upward communication.Which characteristic of effective control systems would this affect?
A) Flexibility
B) Accuracy
C) Accountability
D) Timeliness
E) Objectivity

Accepted Answer

Filtering of upward communication can lead to a lack of accuracy in control systems. When information is filtered or distorted as it moves up the chain of command, decision-makers may not have access to all the relevant information needed to make effective decisions. This can lead to inaccurate assessments of performance and the need for corrective action.

Question 9

Which of the following is NOT a characteristic of effective controls?
A) Flexibility
B) Accuracy
C) Accountability
D) Timeliness
E) Objectivity

Accepted Answer

Accountability is not a characteristic of effective controls; it is more related to the responsibility of individuals or groups to report and justify outcomes. Effective controls should be flexible, accurate, timely, and objective.

Question 10

American Greetings Corporation reported that "its sales have been hurt by people increasingly using the Internet to communicate" and by "lower-priced competition including Hallmark's Warm Wishes line of 99-cent cards." As a result,it decided to lay off 13 percent of its full-time workforce.This need for cost-cutting measures would have been detected by its ____ control system.
A) operations
B) organizational
C) strategic
D) functional
E) environmental

Accepted Answer

The need for cost-cutting measures indicates that American Greetings Corporation needed to adjust its strategy to remain competitive in the market. Therefore, this situation corresponds to strategic control, which focuses on monitoring and adjusting the overall strategy of the organization to achieve its objectives. Option A is incorrect, as operations control is concerned with managing the daily activities of the organization. Option B is incorrect, as organizational control is about coordinating different parts of the organization to achieve a common goal. Option D is incorrect, as functional control focuses on managing specific departments or functions within the organization. Option E is incorrect, as environmental control is about monitoring and adapting to external factors that may affect the organization's performance.

Question 11

The best way to integrate planning and control is to
A) develop controls as plans develop.
B) set goals and standards for control during planning.
C) link control with planning.
D) make integration explicit and precise.
E) All of these choices

Accepted Answer

The best way to integrate planning and control is to do all of the options listed in the choices. Controls should be developed as plans develop, which means that control must be linked with planning. One of the goals of planning should be to set standards and goals for control. Lastly, the integration of planning and control should be explicit and precise.

Question 12

FedEx focuses on top line⎯quality and customer satisfaction.UPS focuses on bottom line⎯efficiency and cost.They have differences in ____ control.
A) operations
B) organizational
C) strategic
D) functional
E) environmental

Accepted Answer

The differences between FedEx and UPS in their focus on quality/customer satisfaction and efficiency/cost is a strategic difference, as it relates to their overarching approach to how they run their businesses.

Question 13

Which of the following is NOT characteristic of decentralized control?
A) Rewards focused on individual performance
B) Employee commitment
C) Widespread employee participation
D) Informal and organic structural arrangements
E) Employee self-control

Accepted Answer

Decentralized control typically involves rewards that are focused on team or organizational performance rather than individual performance. The other options listed are all characteristics of decentralized control.

Question 14

What is the MOST important factor in effectively integrating the planning and control functions?
A) Set clear objectives
B) Develop a strategy that eliminates the need for controls
C) Compare past performance to standards
D) Ensure that the system is flexible
E) Provide for controls as plans are developed

Accepted Answer

Integrating planning and control effectively requires that controls are considered and incorporated during the planning phase, ensuring alignment and adaptability as plans are executed.

Question 15

MTV does not require its various divisions (MTV Europe,MTV Australia,MTV India,MTV Latin America,and so on)to report in frequently.It believes in letting each manager have the authority to respond quickly to environmental changes.These changes do not have to be approved by MTV before they are implemented.MTV has a(n)____ perspective toward international strategic control.
A) administrative
B) mechanistic
C) centralized
D) bureaucratic
E) decentralized

Accepted Answer

MTV's approach of giving each manager the authority to respond quickly to environmental changes and not requiring frequent reporting or approval from the central office indicates a decentralized perspective towards international strategic control.

Question 16

When Boeing bought the aviation parts and services company Aviall,it stated that it expected to have no initial change in earnings and the following year a modest gain.It was
A) attempting to control its external environment.
B) attempting to be timely with its controls.
C) integrating planning with control.
D) relying on bureaucratic controls.
E) None of these choices

Accepted Answer

Boeing's acquisition of Aviall indicates integration of planning with control as Boeing hoped to have no initial change in earnings and the following year a modest gain. This suggests that the acquisition was part of Boeing's strategic plan and that control was integrated into the planning process.

Question 17

____ control is an approach to organizational control characterized by informal and organic structural arrangements.
A) Decentralized
B) Organic
C) Mechanistic
D) Bureaucratic
E) Laissez-faire

Accepted Answer

The answer of ____ control is an approach to organizational...

Question 18

Managers can improve the effectiveness of the control system by
A) changing the performance standards.
B) controlling as many things in the organization as possible.
C) computerizing the system.
D) integrating control with planning.
E) correcting all deviations from standards.

Accepted Answer

Integrating control with planning helps to ensure that the control system is aligned with the strategic objectives of the organization. This helps managers to focus on monitoring the key areas that are critical to the success of the organization, rather than trying to control everything. It also enables managers to anticipate potential problems and take corrective action proactively, which can improve the effectiveness of the control system. Changing performance standards, controlling everything, computerizing the system, and correcting all deviations are all important elements of an effective control system, but they are not as important as integration with planning.

Question 19

World Vision has a flat structure that allows workers in countries scattered around the globe to respond to unique local cultures,situations,and needs.What control structure does World Vision use?
A) Decentralized
B) Organic
C) System 4
D) Bureaucratic
E) Laissez-faire

Accepted Answer

World Vision's flat structure implies that decision-making authority is delegated to workers in various countries, indicating a decentralized control structure. This enables greater responsiveness, flexibility, and local adaptation to meet the unique cultural and situational needs of the communities they serve.

Question 20

Which of the following statements is TRUE concerning what happens to control as the level of uncertainty increases?
A) Measurements need to be taken more frequently.
B) Controls can become less focused.
C) Employees are less likely to resist controls.
D) The control system becomes more objective.
E) The importance of adequate controls decreases.

Accepted Answer

As the level of uncertainty increases, it becomes more crucial to take measurements more frequently to adapt and respond to changes effectively. This helps in maintaining control and making informed decisions.

Quiz 19: Basic Elements of Control

Which of the following is NOT one of the characteristics of an effective control system?

Which of the following is NOT one of the areas on which strategic control should focus?

At the beginning of the planning-controlling process,planning

What characteristic of effective control systems is lacking when a control system reports production output as being better than average,satisfactory,marginal,or unsatisfactory?

The term objective as it relates to controls means that the controls

The level of control designed to ensure that the organization meets its goals is ____ control.

One barrier to effective communication is the filtering of upward communication.Which characteristic of effective control systems would this affect?

Which of the following is NOT a characteristic of effective controls?

The best way to integrate planning and control is to

FedEx focuses on top line⎯quality and customer satisfaction.UPS focuses on bottom line⎯efficiency and cost.They have differences in ____ control.

Which of the following is NOT characteristic of decentralized control?

What is the MOST important factor in effectively integrating the planning and control functions?

When Boeing bought the aviation parts and services company Aviall,it stated that it expected to have no initial change in earnings and the following year a modest gain.It was

____ control is an approach to organizational control characterized by informal and organic structural arrangements.

Managers can improve the effectiveness of the control system by

World Vision has a flat structure that allows workers in countries scattered around the globe to respond to unique local cultures,situations,and needs.What control structure does World Vision use?

Which of the following statements is TRUE concerning what happens to control as the level of uncertainty increases?