Question 1

A budget that states how managers intend to use organizational resources to achieve organizational goals is known as:

Accepted Answer

A)  functional budget
B)  capital budget
C)  master budget
D)  financial budget
E)  operating budgetF) A) and E)
G) C) and D)

Question 2

Discuss the three characteristics of an effective control system in an organization and illustrate each of them with a specific example from an organization of your choosing.

Accepted Answer

An effective control system should be fl...

Question 3

Control systems help managers uncover irregularities in product lines.

Accepted Answer

A) True 
 B)False

Question 4

There are five steps in the control process.

Accepted Answer

A) True 
 B)False

Question 5

An operations manager is responsible for managing an organization's production system.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT one of the mechanisms of behaviour control that managers can use?

Accepted Answer

A)  MBO
B)  Direct supervision
C)  Corporate governance
D)  Output control
E)  Bureaucratic rulesF) A) and B)
G) B) and C)

Question 7

Return on investment is:

Accepted Answer

A)  net income before taxes divided by total assets
B)  net profit after taxes divided by total assets
C)  gross profit margin
D)  operating profit
E)  operating costsF) A) and B)
G) C) and D)

Question 8

Output standards set _.

Accepted Answer

A)  the quantity of the service or product the employee is to produce
B)  the quality expected in the delivery of goods or services
C)  the standards that govern how long it is supposed to take to complete a task
D)  the norms that govern how coworkers should interact with one another
E)  the standards that govern the number of hours workedF) A) and B)
G) C) and D)

Question 9

The most immediate form of behaviour control is:

Accepted Answer

A)  output control
B)  rules
C)  standard operating procedures
D)  MBO
E)  direct supervisionF) A) and E)
G) C) and E)

Question 10

Clan control arises from:

Accepted Answer

A)  Rules and SOPs
B)  An externally imposed system of constraints
C)  Organizational culture
D)  Direct supervision
E)  Procedures used in the organizationF) B) and D)
G) C) and D)

Question 11

The type of control system, which uses rules and SOPs to regulate the behaviour of workers within the organization, is known as:

Accepted Answer

A)  a bureaucratic control system
B)  a feedforward control system
C)  a feedback control system
D)  an MBO system
E)  a concurrent control systemF) B) and C)
G) None of the above

Question 12

Control systems are intended to make organizations more successful by helping managers with all but which one of the following?

Accepted Answer

A)  Adapt to change and uncertainty
B)  Increase routine decision making
C)  Deal with complexity
D)  Facilitate teamwork
E)  Reduce costsF) B) and E)
G) D) and E)

Question 13

The third step in the control process is:

Accepted Answer

A)  evaluating actual levels of performance
B)  establishing standards of performance
C)  comparing actual levels to the standards of performance
D)  measuring actual performance
E)  all of these choices are incorrectF) A) and E)
G) A) and C)

Question 14

This type of ratio is used to determine if a company has the resources available to meet the claims of short-term creditors:

Accepted Answer

A)  ROI
B)  day sales outstanding
C)  quick ratio
D)  inventory turnover
E)  current ratioF) B) and C)
G) A) and E)

Question 15

Activity ratios provide measures of how well managers are using organizational resources to generate profits.

Accepted Answer

A) True 
 B)False

Question 16

William Ouchi used the term "norms" to describe the control exerted on individuals in an organization through shared values, norms, standards of behaviour, and expectations.

Accepted Answer

A) True 
 B)False

Question 17

Define and discuss feedforward control, concurrent control, and feedback control.

Accepted Answer

Feedforward control anticipates problems...

Question 18

All of the following are measures of financial performance, except:

Accepted Answer

A)  Profit ratios
B)  Activity ratios
C)  Leverage ratios
D)  Liquidity ratios
E)  All of these choices are incorrectF) A) and C)
G) A) and B)

Question 19

The top managers of an organization typically use a variety of financial indicators to assess the performance of their organization.Discuss the four major types of financial measures used by these managers and give one specific example of each of these measures in terms of how it would be computed.

Accepted Answer

Managers use profit ratio (ROI, gross pr...

Question 20

Control systems can help an organization gain a competitive advantage by increasing all but which of the following?

Accepted Answer

A)  Efficiency
B)  Innovation
C)  Bureaucracy
D)  Responsiveness to customers
E)  QualityF) A) and E)
G) B) and C)

Exam 11: Managing Control and Operations

An operations manager is responsible for managing an organization's production system.

Correct AnswerverifiedShow Answer

The most immediate form of behaviour control is:

Correct AnswerverifiedShow Answer

The third step in the control process is:

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Control systems help managers uncover irregularities in product lines.

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Define and discuss feedforward control, concurrent control, and feedback control.

Correct AnswerverifiedFeedforward control anticipates problems...View AnswerShow Answer

The type of control system, which uses rules and SOPs to regulate the behaviour of workers within the organization, is known as:

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the mechanisms of behaviour control that managers can use?

Correct AnswerverifiedShow Answer

All of the following are measures of financial performance, except:

Correct AnswerverifiedShow Answer

This type of ratio is used to determine if a company has the resources available to meet the claims of short-term creditors:

Correct AnswerverifiedShow Answer

A budget that states how managers intend to use organizational resources to achieve organizational goals is known as:

Correct AnswerverifiedShow Answer

William Ouchi used the term "norms" to describe the control exerted on individuals in an organization through shared values, norms, standards of behaviour, and expectations.

Correct AnswerverifiedShow Answer

Clan control arises from:

Correct AnswerverifiedShow Answer

Activity ratios provide measures of how well managers are using organizational resources to generate profits.

Correct AnswerverifiedShow Answer

Control systems can help an organization gain a competitive advantage by increasing all but which of the following?

Correct AnswerverifiedShow Answer

There are five steps in the control process.

Correct AnswerverifiedShow Answer

Control systems are intended to make organizations more successful by helping managers with all but which one of the following?

Correct AnswerverifiedShow Answer

Return on investment is:

Correct AnswerverifiedShow Answer

Output standards set _.

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Discuss the three characteristics of an effective control system in an organization and illustrate each of them with a specific example from an organization of your choosing.

Correct AnswerverifiedAn effective control system should be fl...View AnswerShow Answer

The top managers of an organization typically use a variety of financial indicators to assess the performance of their organization.Discuss the four major types of financial measures used by these managers and give one specific example of each of these measures in terms of how it would be computed.

Correct AnswerverifiedManagers use profit ratio (ROI, gross pr...View AnswerShow Answer

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Feedforward control anticipates problems...
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An effective control system should be fl...
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Correct Answer
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Managers use profit ratio (ROI, gross pr...
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