Deck 16: Control: Purpose, Process, and Techniques

Question 1

Standards and the controls they are part of usually focus on measuring and monitoring productivity and quality.

Answer 1

True

Question 2

Productivity is the amount of output achieved from the use of a given amount of inputs.

Answer 2

True

Question 3

Critical control points are all the operations that directly effect the survival of an organization and the success of its most essential activities.

Answer 3

True

Question 4

Quality must be a core value within an organization's culture.

Question 5

Some corrective actions call for exceptions to prescribed modes of behavior.

Question 6

Feedback controls are known as postperformance controls.

Question 7

Standards are either qualitative or quantitative measuring devices.

Question 8

Controlling effects and is effected by all other management functions.

Question 9

Receiving an annual flu shot is an example of a feedforward control.

Question 10

After standards are established,managers must measure actual performance to determine variation from standard.

Question 11

Objectives are determined during the controlling function.

Question 12

Marketing research is a feedforward control technique.

Question 13

Effective feedback from the controlling process should indicate the progress or regression of the objectives.

Question 14

Controls are not effective if they are costly and redundant.

Question 15

Controlling establishes performance standards that are used to measure progress toward goals.

Question 16

Establishing performance standards is the last step in the control process.

Question 17

Timeliness is critical to the effectiveness of controls.

Question 18

Controls do not have to be accepted by the members of an organization to be effective and efficient.

Question 19

A QA process is a validation process to ensure measurement accuracy and standardization.

Question 20

Controls are self sufficient;they do not have to be examined or reexamined for efficiency.

Question 21

Controls can create general support as well as general hostility.

Question 22

Fiscal years and calendar years both start on the first day of January.

Question 23

There is usually a direct correlation between the complexity of a control and the amount of confusion it generates.

Question 24

An organizational unit that contributes costs,revenues,profits,or investments is called a financial responsibility center.

Question 25

The income statement designates a specific,fixed point in time.

Question 26

Control techniques are used to measure and monitor the performances of an organization,its people,and its processes.

Question 27

Finance,marketing,and human resources do not require control techniques.

Question 28

Financial resources are central to management.

Question 29

The balance sheet is a financial statement that reflects a period or duration of time.

Question 30

Financial organizational audits are usually informal.

Question 31

Fixed assets are assets that are normally converted into cash within one year from the date of the balance sheet.

Question 32

A financial responsibility center is an organizational unit that contributes to an organization's costs,revenues,investments,or profits.

Question 33

Control techniques are "similar" in concept to management,i.e. ,they vary by hierarchical level.

Question 34

Assets = Debt(s)+ Capital Expenditures

Question 35

A ratio expresses the relationship between numbers.

Question 36

Effective controls do not need to have the involvement from employee design.

Question 37

Income - Expenses = Profit or Loss

Question 38

Controls must be controlled!

Question 39

Changing circumstances require organizations to monitor controls to ensure that they remain effective.

Question 40

Each financial activity requires specific,relevant control techniques.

Question 41

A validation process to ensure measurement accuracy and standardization is known as:

A)quality control.
B)kaizen.
C)standards.
D)a QA system.

Question 42

Demographic data relate to cultural origin,religion,political philosophy,and personal interests.

Question 43

Cash budgets are the same as capital expenditure budgets.

Question 44

In sequence,the next activity to accomplish in the control process after taking corrective action is to ____________.

A)create strategic plans
B)provide feedback and/or adjustment
C)establish new expectations
D)control deviations

Question 45

A high-level person in charge of planning for and overseeing efforts to control the management of all the risks an organization faces is called a:

A)physical distribution manager.
B)production manager.
C)risk manager.
D)bureaucratic control.

Question 46

Common sense dictates that as plans and goals are developed,____________.

A)each is assured of success
B)each should be viewed as independent elements
C)there must be controls established
D)the next step is staffing the organization

Question 47

Assessing the investment worth of employees is called human asset accounting.

Question 48

The initial step of the control process is ____________.

A)measuring performance
B)establishing standards
C)comparing performance to standards
D)taking corrective action

Question 49

A highly disciplined process that helps companies focus on developing and delivering near-perfect products and services is:

A)quality control.
B)quality assurance.
C)quality circles.
D)Six Sigma.

Question 50

Audits are always conducted by outsiders.

Question 51

The objectives that eventually become the foundation for controls are determined during the ____________ function.

A)planning
B)organizing
C)staffing
D)leading

Question 52

A budget is a concurrent control.

Question 53

Operating budgets include profit budgets.

Question 54

Rent and real estate taxes are variable costs associated with operating budgets.

Question 55

Bottom-up budgeting is also known as grassroots budgeting.

Question 56

Budgets are estimates of revenues or expenses.

Question 57

Zero-based budgeting is an ongoing,indefinite process.

Question 58

The steps in the control process include the following except:

A)developing standing plans.
B)taking corrective action.
C)establishing performance standards.
D)measuring performance.

Question 59

A(n)____________ is any guideline or benchmark established as a basis for measurement or point of reference.

A)indication
B)rule of thumb
C)estimation
D)standard

Question 60

The strategic goals and plans made at the top level in an organization are derived from the organization's:

A)purpose and mission.
B)single-use plans.
C)standing plans.
D)operating employee's.

Question 61

Controls can generate:

A)antagonism.
B)creativity.
C)support.
D)none of the answers are correct.

Question 62

Computer monitoring of customer service telephone calls is an example of which type of control?

A)feedforward
B)optional
C)feedback
D)concurrent

Question 63

Many major airports require people and their carry-on,personal belongings to be screened through a metal detection device.This procedure is a concurrent as well as ____________ control.

A)feedforward
B)feedback
C)therapeutic
D)process

Question 64

Controls that focus on "after the fact" are called ____________ controls.

A)diagnostic
B)feedback
C)feedforward
D)therapeutic

Question 65

Often an employee can follow ____________ when they must take corrective action to prevent further defects.

A)quality manuals
B)leadership influence
C)policies and procedures
D)QA

Question 66

If a control is too __________,a deviation between actual and planned performance may result in poor coordination among organizational subunits.

A)tight
B)loose
C)accurate
D)inaccurate

Question 67

Examples of feedforward controls include ____________ controls.

A)therapeutic
B)backlash
C)diagnostic
D)prevention

Question 68

Often in organization we use a ____________ as a measure of quality or quantity to monitor people.

A)standard
B)skill level
C)employee policy
D)employee productivity measure

Question 69

The concept that measurements provided by the control process will reach the proper decision makers when they are needed is the concept of:

A)concurrent.
B)integration.
C)timeliness.
D)accuracy.

Question 70

The basic types of controls are ____________.

A)prevention,diagnostic,therapeutic
B)feedforward,in-process,diagnostic
C)prevention,feedback,feedforward
D)feedforward,concurrent,feedback

Question 71

McAfee and Norton Anti-Virus computer software are examples of ____________ controls.

A)quality
B)computer
C)feedbackward
D)feedforward

Question 72

The amount of output achieved from the use of a given amount of inputs is __________.

A)productivity.
B)benchmarking.
C)performance control.
D)standardization.

Question 73

Within the control process,variations from standards will initially appear during the phase of ____________.

A)establishing standards
B)measuring performance
C)comparing performance to standard
D)taking corrective action

Question 74

Once established and in place,standards must be ____________.

A)blended with established plans
B)left alone
C)continually reevaluated
D)continually rewritten

Question 75

The operations that directly affect survival of an organization and the success of its most essential activities are known as:

A)success/failure controls.
B)relevant time slots.
C)performance standards.
D)critical control points.

Question 76

Changing the engine oil and oil filter every 3,000 to 5,000 miles in a passenger car is a ____________ control.

A)feedforward
B)diagnostic
C)feedback
D)concurrent

Question 77

When controls and the need for them are consistent with the organization's values,the controls will be:

A)ineffective.
B)coordinated.
C)in sync.
D)effective.

Question 78

A control mechanism that focuses on continuous incremental quality improvement is ____________.

A)quality measure
B)QA
C)QM
D)total quality management

Question 79

If managers want to design controls that will be accepted they should:

A)create easy to follow procedures
B)let employees "ease into it"
C)involve employees in the creation process
D)reward employees for understanding the control mechanisms

Question 80

____________ is a process quality goal that helps companies deliver near perfect.

A)Six Sigma
B)Management productivity monitor
C)Quality management
D)Motorola-Quality-Service