Question 1

Liabilities are the firm's debts,both current and long-term.

Accepted Answer

Liabilities refer to the debts of a firm, which can be short-term (current liabilities) or long-term. Therefore, the statement is true.

Question 2

Feedback control focuses on the quantity of an end product or service.

Accepted Answer

False

Question 3

The level of funds flowing through the organization and the nature of cash disbursements is shown through the capital budget.

Accepted Answer

The capital budget primarily shows the planned spending on long-term investments, such as new projects, equipment, or facilities, rather than the flow of funds or nature of cash disbursements.

Question 4

Bottom-up budgeting is a process in which lower level managers anticipate their department's resource needs and pass them up to top management for approval.

Accepted Answer

This is an accurate definition of bottom-up budgeting.

Question 5

A balance sheet budget is a budget that plans and reports investments in major assets to be depreciated over several years.

Accepted Answer

A balance sheet budget is a financial statement that projects the financial position of a company at a specific point in time, showing expected assets, liabilities, and equity, not specifically focusing on investments in major assets to be depreciated.

Question 6

Effectively controlling an organization requires information about product standards and actual products,as well as actions to correct any deviations from the standards.

Accepted Answer

The answer of Effectively controlling an organization requires information about...

Question 7

A responsibility center is the fundamental unit of analysis for a budget control system.

Accepted Answer

A responsibility center is a department, division, or unit within an organization that has its own set of goals and objectives, and is responsible for controlling its own costs and performance. It is the fundamental unit of analysis for a budget control system, as it allows for the tracking and monitoring of expenses and revenues within each center. By assigning responsibility to specific centers and holding them accountable for their performance, organizations can ensure that their budgetary goals are met while promoting efficiency and effectiveness throughout the organization.

Question 8

In most companies,managers rely exclusively on qualitative measures to measure actual performance.

Accepted Answer

While some managers may depend only on qualitative measures, many rely on a combination of quantitative and qualitative measures to evaluate performance. Quantitative measures include metrics such as sales figures, production rates, and customer satisfaction ratings. Qualitative measures, on the other hand, include employee morale, customer feedback, and other subjective factors. Using a mix of both approaches can provide a more well-rounded view of performance.

Question 9

Customer service,external business processes,financial performances,and the organization's capacity for learning and growth are the four major perspectives of the balanced scorecard.

Accepted Answer

The answer of Customer service,external business processes,financial performances,and the organization's...

Question 10

The feedback control model is a comprehensive management control system that balances traditional financial measures with measures of customer service,internal business processes,and the organization's capacity for learning and growth.

Accepted Answer

The answer of The feedback control model is a comprehensive...

Question 11

Effective management control involves subjective judgment and employee discussions,as well as objective analysis of performance data.

Accepted Answer

Effective management control involves a combination of subjective judgment and employee discussions, as well as objective analysis of performance data. Both qualitative and quantitative measures are important in evaluating performance and making decisions about resource allocation and process improvements. This requires a balance between hard data and softer, more qualitative inputs, such as employee feedback and discussion, to get a complete picture of what is happening within the organization.

Question 12

Managers focus on the various elements of the scorecard to set targets,evaluate performance,and guide discussion about what further actions need to be taken.

Accepted Answer

This statement is true. Managers use the scorecard to set targets, evaluate performance, and guide discussions about what further actions need to be taken based on the results.

Question 13

A standard for performance is included in an organization's overall strategic plan to compare organizational activities against.

Accepted Answer

A standard for performance helps an organization to measure and monitor progress towards achieving its strategic objectives. It serves as a benchmark for comparing organizational performance against established goals, and helps in identifying areas that require improvement. Therefore, a standard for performance is an essential component of an organization's overall strategic plan.

Question 14

The balance sheet shows the firm's financial position with respect to expenses and credits at a specific point in time.

Accepted Answer

The balance sheet shows the firm's financial position with respect to assets, liabilities, and equity at a specific point in time, not expenses and credits.

Question 15

A process in which lower level managers anticipate their department's resource needs and pass them to top management for approval is called top-down budgeting.

Accepted Answer

The process described is actually bottom-up budgeting, where lower level managers provide input on resource needs which are later approved by top management. Top-down budgeting involves upper management setting the budgetary goals and then allocating resources down to the lower levels.

Question 16

The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.

Accepted Answer

This is correct. The final step of the feedback control model is to either continue monitoring performance if it is adequate or to take corrective action if it is inadequate.

Question 17

It is important to create a written Internet policy for an "acceptable use policy" for workplace Internet use.

Accepted Answer

It is important for businesses to have a written Internet policy to outline acceptable use of the Internet at work, protect the company's network and data, and prevent legal liabilities. This policy should be communicated to employees and regularly reviewed and updated as technology and Internet use evolve.

Question 18

The systematic process of regulating organizational activities to make them consistent with the expectations in plans,targets,and standards of performance refers to organizational control.

Accepted Answer

This statement accurately defines organizational control as the process of ensuring that organizational activities align with established plans and performance standards.

Question 19

An expense budget lists forecasted and actual revenues of the organization.

Accepted Answer

An expense budget lists forecasted and actual expenses, not revenues.

Question 20

The fourth step in the control process is comparing actual activities to performance standards.

Accepted Answer

The answer of The fourth step in the control process...

Quiz 19: Managing Quality and Performance