Question 1

Control systems can help an organization gain a competitive advantage by increasing all but which of the following?
A)Efficiency
B)Innovation
C)Bureaucracy
D)Responsiveness to customers
E)Quality

Accepted Answer

Control systems are designed to increase efficiency, innovation, responsiveness to customers, and quality. However, they are not designed to increase bureaucracy. Bureaucracy is a negative consequence of poorly designed control systems. Therefore, the correct answer is C, as the other choices are all benefits that can be achieved through effective control systems implementation.

Question 2

At the stage of the process of transforming raw materials into finished goods, managers typically use control procedures to anticipate problems before they
Occur.
A)conversion; feedforward
B)input; feedforward
C)conversion; feedback
D)input; concurrent
E)output; concurrent

Accepted Answer

B

Question 3

Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working is known as:
A)concurrent control
B)control system
C)feedback control
D)feedforward control
E)behaviour control

Accepted Answer

The formal target-setting, monitoring, evaluation, and feedback systems describe a control system, which provides managers with information to determine how well the organization’s structure and strategy are working. Option A, concurrent control, refers to monitoring ongoing activities to ensure they are on track. Option C, feedback control, is a type of control system that uses information from past performance to correct and adjust performance. Option D, feedforward control, is a type of control system that anticipates problems and takes action before they occur. Option E, behaviour control, refers to using rules and procedures to regulate staff behaviour. While each option relates to control in some way, only option B accurately describes the overall concept described in the question stem.

Question 4

The steps in the control process are:
A)Measuring performance, comparing, evaluating actual performance, and taking corrective action
B)Establishing standards, measuring performance, evaluating performance, and taking corrective action
C)Establishing standards of performance, then measuring, comparing, and evaluating actual performance
D)Establishing standards, evaluating performance, comparing, and taking corrective action
E)Establishing standards, evaluating performance, measuring performance, and confirming appropriate standards

Accepted Answer

The answer of The steps in the control process are:
A)Measuring...

Question 5

All of the following are measures of financial performance, except:
A)Profit ratios
B)Activity ratios
C)Leverage ratios
D)Liquidity ratios
E)All of these choices are incorrect

Accepted Answer

All of the choices (A) through (D) are measures of financial performance, therefore the statement "except" is incorrect.

Question 6

When comparing actual performance against chosen standards, mangers must decide whether the deviation is substantial enough to warrant taking corrective action by:
A)Determining the cause and take corrective action
B)Determining an acceptable range of performance levels above and below the standard
C)Determining if the variance is significant
D)Computing the variance
E)All of these choices are correct

Accepted Answer

Managers must determine the cause of the deviation, establish an acceptable range of performance, assess if the variance is significant, and compute the variance to decide on corrective actions.

Question 7

Control that gives managers information about customers' reactions to goods and services so that corrective action can be taken if necessary, is known as:
A)concurrent control
B)control system
C)feedback control
D)feedforward control
E)behaviour control

Accepted Answer

Feedback control is a type of control that provides managers with information about customers' reactions to goods and services, allowing them to take corrective action if necessary. This feedback can come from a variety of sources, including customer surveys, online reviews, and social media. By analyzing this feedback, managers can identify areas where improvements need to be made and take steps to address any issues that may be affecting customer satisfaction.

Question 8

Direct supervision can do the following:
A)Demotivate employees
B)Promote desirable behaviours which can increase efficiency
C)Teach employees
D)Be very expensive
E)All of these choices are correct

Accepted Answer

Direct supervision can motivate employees, promote desirable behaviours, teach employees, and be expensive.

Question 9

The process by which managers monitor and regulate the efficiency and effectiveness of the members of an organization in achieving its goals, is called:
A)Organizing
B)Planning
C)Controlling
D)Coordinating
E)Leading

Accepted Answer

Controlling involves monitoring and regulating the performance of members in an organization to ensure that goals are being efficiently and effectively achieved. Organizing involves arranging resources and tasks to achieve those goals, planning involves setting those goals and determining actions to achieve them, coordinating involves managing resources and activities to achieve those goals, and leading involves influencing and motivating members to achieve those goals.

Question 10

At the stage of the process of transforming raw materials into finished goods, operations managers typically use control procedures to obtain immediate
Feedback about how efficiently the raw materials are being transformed into finished goods.
A)input; feedback
B)output; concurrent
C)conversion; concurrent
D)input; concurrent
E)output; feedforward

Accepted Answer

At the conversion stage, operations managers use concurrent control procedures to obtain immediate feedback about how efficiently raw materials are being transformed into finished goods. This allows them to make real-time adjustments and corrections to ensure maximum efficiency and productivity. Therefore, the correct choice is C - conversion; concurrent.

Question 11

When an organization sets up a system to measure the changes taking place in customer tastes so they can increase or decrease the production of specific products, this is an example of:
A)bureaucratic control
B)feedforward control
C)functional control
D)concurrent control
E)feedback control

Accepted Answer

The answer of When an organization sets up a system...

Question 12

The variety of standards set by managers include all but one of the following:
A)Output
B)Behavioural
C)Time
D)Quality
E)Clan control

Accepted Answer

Clan control is not a type of standard set by managers. The correct types of standards are output, behavioral, time, and quality.

Question 13

An effective control system:
A)Provides accurate information
B)Provides managers with timely information
C)Is flexible enough to allow managers to deal with unexpected events
D)Gives managers a true picture of organizational performance
E)All of these choices are correct

Accepted Answer

An effective control system should provide accurate and timely information to managers, be flexible enough to adapt to unexpected events, and give a true picture of organizational performance. Therefore, all of the choices - A) Provides accurate information, B) Provides managers with timely information, C) Is flexible enough to allow managers to deal with unexpected events, and D) Gives managers a true picture of organizational performance - are correct.

Question 14

Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise is known as:
A)concurrent control
B)control system
C)feedback control
D)feedforward control
E)behaviour control

Accepted Answer

Concurrent control gives immediate feedback and allows managers to correct problems as they arise. The other options do not necessarily provide immediate feedback or have the ability to correct problems in real-time.

Question 15

Clan control arises from:
A)Rules and SOPs
B)An externally imposed system of constraints
C)Organizational culture
D)Direct supervision
E)Procedures used in the organization

Accepted Answer

Clan control is a type of control that arises from the organization's culture, values, norms, beliefs, and traditions. It is based on the idea that employees who share similar backgrounds, beliefs, and values are more likely to follow the rules and conform to the standards of behavior set by the organization. Clan control relies on informal social control mechanisms, such as peer pressure, group norms, and socialization processes, to enforce desired behaviors and prevent deviance. Rules and procedures may still be important but are seen as secondary support mechanisms to the underlying culture. Clan control is often used in organizational settings where teamwork, collaboration, and employee engagement are critical to the organization's success or where external oversight is limited or absent. Therefore, option C is the best choice.

Question 16

When operations managers screen job applicants by using several interviews to select the most highly skilled people, this is an example of:
A)feedforward control
B)feedback control
C)concurrent control
D)conversion control
E)output control

Accepted Answer

This is an example of feedforward control because the managers are taking steps before the hiring process to ensure that they select the most highly skilled individuals for the job. This type of control is proactive and focuses on preventing problems before they occur.

Question 17

In general, the more _________ organizational activities are, the it is for managers to measure outputs or behaviours.
A)routine; harder
B)complex; harder
C)complex; easier
D)routine; easier
E)none of these choices are correct

Accepted Answer

The more complex organizational activities are, the harder it is for managers to measure outputs or behaviors. This is because complex activities tend to involve multiple variables and are not as straightforward as routine activities. Therefore, it is more difficult to determine the specific inputs and outputs that contribute to the success or failure of these activities.

Question 18

When a division manager is told to "maximize the revenues from the sales of goods and services produced," this is an example of:
A)an expense budget approach
B)a profit budget approach
C)a cash flow budget approach
D)a capital budget approach
E)a revenue budget approach

Accepted Answer

The statement specifically mentions maximizing revenues, which is a clear indication that the approach being used is a revenue budget approach. This approach focuses on increasing the overall revenue generated by the company through the sale of goods and services, rather than just cutting costs or increasing profits.

Question 19

The components of an effective output control system are:
A)Capital budget planning, evaluation of results, and corrective action taken when necessary
B)Objective financial measures, performance standards derived from goals, and appropriate operating budgets
C)Subjective financial measures, performance standards derived from goals, and appropriate operating budgets
D)Cost budget analysis, divisional goals, and performance standards
E)None of these choices are correct

Accepted Answer

Objective financial measures, performance standards derived from goals, and appropriate operating budgets are essential components of an effective control system. This allows for clear benchmarks and goals to be set and tracked, as well as the financial data to evaluate performance and make necessary adjustments. Capital budget planning and divisional goals may also be important, but they are not as central to the control system as the components listed in choice B. Subjective financial measures are not as reliable as objective ones, and may not provide an accurate picture of performance. Choice E is incorrect as there is a correct choice in the options.

Question 20

This type of ratio is used to determine if a company has the resources available to meet the claims of short-term creditors:
A)ROI
B)day sales outstanding
C)quick ratio
D)inventory turnover
E)current ratio

Accepted Answer

The current ratio measures a company's ability to meet short-term obligations by comparing its current assets to its current liabilities. Short-term creditors, such as suppliers and lenders, are interested in this ratio because it indicates whether a company has enough resources to pay off its debts as they come due. A higher current ratio indicates a stronger ability to meet short-term obligations, while a lower current ratio may suggest potential liquidity issues. Therefore, the current ratio is the best choice for this scenario.

Quiz 11: Managing Control and Operations

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

At the stage of the process of transforming raw materials into finished goods, managers typically use control procedures to anticipate problems before they Occur.

Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working is known as:

The steps in the control process are:

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

When comparing actual performance against chosen standards, mangers must decide whether the deviation is substantial enough to warrant taking corrective action by:

Control that gives managers information about customers' reactions to goods and services so that corrective action can be taken if necessary, is known as:

Direct supervision can do the following:

The process by which managers monitor and regulate the efficiency and effectiveness of the members of an organization in achieving its goals, is called:

At the stage of the process of transforming raw materials into finished goods, operations managers typically use control procedures to obtain immediate Feedback about how efficiently the raw materials are being transformed into finished goods.

When an organization sets up a system to measure the changes taking place in customer tastes so they can increase or decrease the production of specific products, this is an example of:

The variety of standards set by managers include all but one of the following:

An effective control system:

Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise is known as:

Clan control arises from:

When operations managers screen job applicants by using several interviews to select the most highly skilled people, this is an example of:

In general, the more _________ organizational activities are, the it is for managers to measure outputs or behaviours.

When a division manager is told to "maximize the revenues from the sales of goods and services produced," this is an example of:

The components of an effective output control system are:

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