Question 1

Mark recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation. Here, Mark is recommending ________.

Accepted Answer

Mark's recommendation is to identify and correct the source of the deviation, which is the essence of basic corrective action. Feedforward control involves taking action to prevent deviations from occurring, while immediate corrective action involves addressing deviations as they occur. Concurrent control involves monitoring ongoing processes to ensure they are on track. None of these fully capture the approach that Mark is suggesting.

Question 2

At the beginning of every shift, Cody records the amount of pizza sauce in inventory. At the end of every shift, he records the number of pizzas made and the amount of pizza sauce left in inventory. Why would he do this?

Accepted Answer

By recording the amount of pizza sauce used during a shift and comparing it to the budgeted amount, Cody can determine if his pizzeria is using too much or too little sauce. This can help him adjust his inventory and ordering practices to minimize waste and unnecessary expenses. The other options (A, C, and D) are not the primary reasons for why Cody would record the amount of pizza sauce in inventory and the number of pizzas made.

Question 3

________ corrects the problem at once to get performance back on track.

Accepted Answer

Immediate corrective action is the best choice to quickly correct the problem and get performance back on track. Basic corrective action may not be sufficient to address the issue at hand, verbal feedback may not have enough impact, and disciplinary action may be too severe for a minor problem.

Question 4

In a short essay, list and briefly explain the steps, processes, and best practices managers typically utilize in the control process. Provide examples where appropriate.

Accepted Answer

The answer of In a short essay, list and briefly...

Question 5

Brenda is always ready with a story to tell about performance in her area. Unfortunately, Brenda sometimes leaves out important facts and makes statements that cannot be corroborated. Brenda is delivering ________.

Accepted Answer

The answer of Brenda is always ready with a story...

Question 6

If the variance between the standard and the actual result is in the organization's favor, managers do not need to do anything.

Accepted Answer

Even if the variance is in the organization's favor, managers should analyze the reasons behind it to understand positive performance and ensure that it can be sustained or improved further.

Question 7

The goal for the sales team at the auto dealership was to sell one new car per day every day of the month. In August the team sold 33 cars. What should management do?

Accepted Answer

Selling 33 cars in a month is very close to the goal of selling 30 cars in a month, which is one car per day. Therefore, the deviation from the goal is insignificant, and no action needs to be taken.

Question 8

Managers should use subjective measures when ________.

Accepted Answer

Subjective measures are appropriate when work activities cannot be expressed in quantifiable terms. In this scenario, managers should rely on their subjective judgment and personal experience to evaluate performance. The other options may also require subjective measures, but this is the only option where there is no objective way of measuring performance.

Question 9

Basic corrective action corrects problems at once to get performance back on track.

Accepted Answer

The answer of Basic corrective action corrects problems at once...

Question 10

Managers should do nothing if the variance observed from the standard is acceptable.

Accepted Answer

If the variance observed from the standard is within an acceptable range, there is no need for the manager to take any action. It is only when the variance is beyond the acceptable range that managers need to investigate the cause and take corrective action.

Question 11

Managers could choose to do nothing when ________.

Accepted Answer

When the difference between actual performance and standard performance is low and acceptable, managers could choose to do nothing as the performance is still meeting the acceptable level.

Question 12

At the end of every month, the accounting department submits a balance sheet, statement of profit and loss, and cash flow statement to the senior management team. These are all ________.

Accepted Answer

The best choice is D (written reports) because the accounting department submits balance sheets, statements of profit and loss, and cash flow statements in written form. A) Personal observations are subjective and not based on data or financial statements. B) Statistical reports may be included in the financial reports, but they are not the only type of report submitted. C) Oral reports are not mentioned as a method of submitting the financial reports.

Question 13

Following a customer complaint, Bigly Mfg. formed a problem solving team to find out why the system was producing unacceptable parts and make a recommendation to fix it. This is an example of ________.

Accepted Answer

Basic corrective action involves identifying and solving the root cause of a problem to prevent its recurrence, which is what the problem-solving team at Bigly Mfg. is set out to do following a customer complaint.

Question 14

Some control criteria, such as employee satisfaction, can be used for any management situation.

Accepted Answer

Employee satisfaction is a universal control criteria that can be applied to any management situation as it is a key determinant of employee motivation, productivity and retention levels, which in turn impacts organizational performance and success.

Question 15

Deviations that exceed the acceptable range of variation become significant and need a manager's attention.

Accepted Answer

Deviations outside the acceptable range of variation can have a negative impact on the project or organization and may require the manager's attention to avoid potential problems.

Question 16

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________.

Accepted Answer

Basic corrective action involves investigating the cause of a deviation from the acceptable range of variation and then taking necessary corrective action to eliminate the source of the deviation. Feedback control and concurrent control refer to different types of control processes, while immediate corrective action is focused on addressing deviations in the short term rather than investigating the root cause.

Question 17

Which one of the following sources provides information which is comprehensive, formal, and easy to file and retrieve?

Accepted Answer

Written reports provide comprehensive information that can be easily filed and retrieved in a formal manner. Unlike oral reports or personal observations, written reports provide a structured format that includes headings, subheadings, and references to support the information provided. Additionally, written reports can be saved electronically or in hard copy format for easy access and retrieval. While online reports may be comprehensive, they can vary in formality and may not always be easy to file and retrieve.

Question 18

The comparing step in the control process determines ________.

Accepted Answer

The comparing step in the control process determines the variation between actual performance and the standard. This helps in identifying if the actual performance is meeting the desired level or not. Option A talks about relative position in the industry but doesn't clarify on what basis. Option B talks about performance variances, but it doesn't specify the standard against which the variance is calculated. Option C talks about an external benchmark from a non-competitor, which is not relevant to the control process.

Question 19

For which of the following is a subjective measure most appropriate?

Accepted Answer

The level of satisfaction of patient care is a subjective measure as it involves individual perceptions and opinions. It cannot be objectively measured through concrete data or statistics.

Question 20

"No, James, you must start the timer after you lower the French fry basket into the fryer, not before." This supervisor is using ________.

Accepted Answer

The supervisor is giving immediate corrective action by correcting James in real-time and explaining the correct timing for starting the timer.

Quiz 18: Controlling Activities and Operations