Question 1

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)revenue
B)output
C)capital expenditures
D)balance sheet
E)cash-flow

Accepted Answer

The budget mentioned is projecting the university's income or revenue from various sources. Therefore, it is an example of a revenue budget.

Question 2

Which of the following is NOT a type of financial budget?
A)Cash-flow
B)Capital expenditure
C)Balance sheet
D)Cash
E)Profit

Accepted Answer

The answer of Which of the following is NOT a...

Question 3

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)None of these choices

Accepted Answer

The major forms of operations control discussed in the text are preliminary, screening, and postaction. Functional is not mentioned as a form of operations control.

Question 4

Deirdre is a freelance editor.She knows how many chapters she needs to edit and approximately how long each chapter takes.She is calculating what she needs to do to meet her next deadline.She is making a ____ budget.
A)labor
B)production
C)space
D)balance sheet
E)capital expenditure

Accepted Answer

A labor budget is focused on the costs associated with personnel needed to complete a project or job. As a freelance editor, Deirdre's primary expense is likely the time it takes her to edit each chapter, making a labor budget the most appropriate choice.

Question 5

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results after the passage of legislation,the politicians are using ____ control.
A)preliminary
B)screening
C)postaction
D)cybernetic
E)feedback

Accepted Answer

Postaction control refers to the evaluation and adjustment of policies and decisions after they have been implemented. By following poll results after legislation has been passed, politicians are using postaction control to assess the effectiveness of their policies and make any necessary adjustments. The other options (preliminary, screening, cybernetic, and feedback) are not relevant to this scenario.

Question 6

Which of the following is a type of financial budget that deals with forecasting the organization's assets and liabilities in the event all other budgets are met?
A)Cash-flow
B)Liquidity
C)Capital expenditure
D)Balance sheet
E)Pro forma

Accepted Answer

The balance sheet is a type of financial budget that provides a snapshot of an organization's assets, liabilities, and equity at a particular point in time. It is not focused on predicting future cash inflows and outflows, but rather on presenting a clear picture of the organization's financial position. It is important to note that creating a balance sheet is not a budgeting process in itself but is rather a way to document the financial health of an organization.

Question 7

Once a year Boy Scout troops submit financial reports describing income and expenditures.This is an example of ____ control.
A)preliminary
B)screening
C)postaction
D)cybernetic
E)feedback

Accepted Answer

This is an example of postaction control because the financial reports are submitted after the income and expenditures have occurred, allowing for analysis and evaluation of the troop's financial status for the year.

Question 8

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

Accepted Answer

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

Question 9

The percentage of graduates who find a job within six months of graduation is a ____ control for colleges and universities.
A)preliminary
B)screening
C)postaction
D)cybernetic
E)feedback

Accepted Answer

The percentage of graduates who find a job within six months of graduation is a postaction control for colleges and universities because it is a measure of the effectiveness of the institution in preparing its graduates for the job market after they have already graduated. Preliminary and screening controls are put in place before an action is taken, whereas cybernetic and feedback controls are ongoing and iterative.

Question 10

Budgets
A)help managers coordinate resources.
B)help define standards for control.
C)provide guidelines about resources.
D)enable the evaluation of the performance of managers.
E)All of these choices

Accepted Answer

Budgets serve multiple purposes, including helping managers coordinate resources, define standards for control, provide guidelines about resources, and evaluate the performance of managers. Therefore, all of the given choices are correct.

Question 11

Which of the following statements does NOT describe a weakness associated with budgeting?
A)Some managers 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 actually describes a strength of budgeting, as it highlights how budgets connect long-term strategic planning with day-to-day management and control. The other statements represent potential weaknesses or limitations of budgeting.

Question 12

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

Accepted Answer

The act of Amazon asking customers to rate their experience after they have received the product and service is an example of postaction control. Postaction control refers to control measures that are taken after the completion of a task or activity to evaluate their effectiveness and efficiency. The customers' ratings provide feedback for Amazon to improve their product and service in the future.

Question 13

Screening controls
A)take place during the transformation process.
B)involve interviewing potential employees.
C)are the same as preliminary control.
D)determine organizational flexibility.
E)determine accuracy of organizational standards.

Accepted Answer

Screening controls are a type of internal control that takes place during the transformation process, aiming to ensure that the ongoing operations meet the set standards and are on track towards achieving the organizational goals.

Question 14

At the end of each fiscal year,managers report in their performance report if they are under budget.This is an example of a(n)____control.
A)labor
B)operations
C)information
D)finance
E)revenue

Accepted Answer

The reporting on being under budget at the end of the fiscal year is related to financial control, making option D (finance) the best choice.

Question 15

Which of the following is NOT a type of operating budget?
A)Production
B)Sales
C)Expense
D)Profit
E)Revenue

Accepted Answer

The answer of Which of the following is NOT a...

Question 16

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians "float an idea" by having a staff member leak it to the press to gauge reaction,the politician's staff is using ____ control.
A)screening
B)preliminary
C)postaction
D)cybernetic
E)yes-no

Accepted Answer

Preliminary control involves initiating an action to anticipate potential problems and prevent them from occurring. In this case, the politician's staff is using a preliminary control by floating an idea to the press to gauge public reaction before making a decision.

Question 17

Postaction control is most appropriate when the
A)time between goal setting and attainment is short.
B)product being produced is nonperishable.
C)product being produced is simple and routine.
D)production process is very complicated.
E)volume of product output is extremely large.

Accepted Answer

The answer of Postaction control is most appropriate when the
A)time...

Question 18

A plant manager is told that she has 8,000 labor hours to allocate in a week.This is an example of a(n)____ budget.
A)operations
B)financial
C)nonmonetary
D)output
E)expense

Accepted Answer

The answer of A plant manager is told that she...

Question 19

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)screening
C)postaction
D)cybernetic
E)feedback

Accepted Answer

Screening control involves collecting and analyzing information to make decisions. In this case, politicians are using poll results as one source of information to make decisions about policies, which fits the definition of screening control.

Question 20

The ____ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used.
A)operating
B)capital expenditure
C)revenue
D)cash-flow
E)nonmonetary

Accepted Answer

The answer of The ____ budgets are organizational budgets that...

Quiz 20: Basic Elements of Control

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.

Which of the following is NOT a type of financial budget?

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

Deirdre is a freelance editor.She knows how many chapters she needs to edit and approximately how long each chapter takes.She is calculating what she needs to do to meet her next deadline.She is making a ____ budget.

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results after the passage of legislation,the politicians are using ____ control.

Which of the following is a type of financial budget that deals with forecasting the organization's assets and liabilities in the event all other budgets are met?

Once a year Boy Scout troops submit financial reports describing income and expenditures.This is an example of ____ control.

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

The percentage of graduates who find a job within six months of graduation is a ____ control for colleges and universities.

Budgets

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

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

Screening controls

At the end of each fiscal year,managers report in their performance report if they are under budget.This is an example of a(n) ____control.

Which of the following is NOT a type of operating budget?

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians "float an idea" by having a staff member leak it to the press to gauge reaction,the politician's staff is using ____ control.

Postaction control is most appropriate when the

A plant manager is told that she has 8,000 labor hours to allocate in a week.This is an example of a(n) ____ budget.

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.

The ____ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used.