Question 1

A variable budget can be adjusted over time to accommodate pertinent changes in the environment.

Accepted Answer

A fixed budget allocates resources on the basis of a single estimate of costs.That is,there is only one set of expenses;the budget does not allow for adjustment over time.A variable budget allows the allocation of resources to vary in proportion with various levels of activity.That is,the budget can be adjusted over time to accommodate pertinent changes in the environment.

Question 2

A formal financial projection is known as an external audit.

Accepted Answer

A budget is a formal financial projection.It states an organization's planned activities for a given period of time in quantitative terms,such as dollars,hours,or number of products.

Question 3

In Deming's PDCA cycle,"D" stands for "do," which means to implement the change or make a small-scale test.

Accepted Answer

The PDCA cycle is a plan-do-check-act cycle using observed data for continuous improvement of operations "Do" means to implement the change or make a small-scale test.

Question 4

A principle of Deming management is that quality should be aimed at meeting the needs and expectations of the ultimate user.

Accepted Answer

One of Deming's principles is that quality should be aimed at the needs of the consumer."The consumer is the most important part of the production line," Deming wrote.Thus,the efforts of individual workers in providing the product or service should be directed toward meeting the needs and expectations of the ultimate user.

Question 5

A variable budget does not allow the allocation of resources to vary in proportion with various levels of activity.

Accepted Answer

A variable budget allows the allocation of resources to vary in proportion with various levels of activity.That is,the budget can be adjusted over time to accommodate pertinent changes in the environment.

Question 6

An income statement summarizes an organization's financial results over a specified period of time,such as a quarter or a year.

Accepted Answer

The income statement summarizes an organization's financial results,its revenues and expenses,over a specified period of time,such as a quarter or a year.

Question 7

The singular task of internal auditors is to verify that the organization,in preparing its financial statements,followed generally accepted accounting principles.

Accepted Answer

External auditors are certified public accountants (CPAs)who work for an accounting firm that is independent of the organization being audited.Their task is to verify that the organization,in preparing its financial statements and in determining its assets and liabilities,followed generally accepted accounting principles.

Question 8

Ratio analysis is the practice of evaluating financial ratios to determine an organization's financial health.

Accepted Answer

Managers often use ratio analysis,the practice of evaluating financial ratios,to determine an organization's financial health.

Question 9

One advantage with incremental budgets is that they are flexible in meeting environmental demands.

Accepted Answer

One difficulty is that incremental budgets tend to lock departments into stable spending arrangements;they are not flexible in meeting environmental demands.

Question 10

An external audit is a verification of an organization's financial accounts and statements by the organization's own professional staff.

Accepted Answer

An internal audit is a verification of an organization's financial accounts and statements by the company's professional staff.

Question 11

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point;only incremental changes in the budget request are reviewed.

Accepted Answer

Managers can take essentially two budget-planning approaches.One of them,zero-based budgeting (ZBB),which forces each department to start from zero in projecting funding needs,is no longer favored.Incremental budgeting,which is mainly used now,allocates increased or decreased funds to a department by using the last budget period as a reference point;only incremental changes in the budget request are reviewed.

Question 12

The two core principles of TQM are people orientation and productivity orientation.

Accepted Answer

The two core principles of TQM are (1)people orientation,in which everyone involved with the organization should focus on delivering value to customers;and (2)improvement orientation,in which everyone should work on continuously improving the work processes.

Question 13

TQM assumes that,if given empowerment,employees will focus on quality.

Accepted Answer

The people orientation of TQM has several assumptions,one of which is that people will focus on quality if given empowerment.The reasoning here is that the people actually involved with the product or service are in the best position to detect opportunities for quality improvements.

Question 14

On her first visit to a new doctor's office,Candace noted the fine furniture in the pristine lobby and the crisp white coats that each of the staff wore.Candace was judging the tangibles dimension of the RATER scale.

Accepted Answer

The RATER scale enables customers to rate the quality of a service along the five dimensions of reliability,assurance,tangibles,empathy,and responsiveness (abbreviated RATER),each on a scale from 1 (for very poor)to 10 (for very good).The dimension known as tangibles pertains to judging physical facilities,equipment,and the appearance of personnel.

Question 15

TQM assumes that continuous improvement must be an everyday matter and that no improvement is too small.

Accepted Answer

The improvement orientation of TQM has several assumptions,one of which is that it's better to do small improvements all the time.This is the assumption that continuous improvement must be an everyday matter,that no improvement is too small,and that there must be an ongoing effort to make things better a little bit at a time all the time.

Question 16

Only incremental changes in the budget request are reviewed in incremental budgeting.

Accepted Answer

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point;only incremental changes in the budget request are reviewed.

Question 17

The point of an audit is to provide a yardstick against which managers can measure performance and make comparisons as with other departments or previous years.

Accepted Answer

The point of a budget is to provide a yardstick against which managers can measure performance and make comparisons (as with other departments or previous years).

Question 18

The RATER scale enables customers to rate the quality of service along five dimensions.

Accepted Answer

The RATER scale enables customers to rate the quality of a service along the five dimensions of reliability,assurance,tangibles,empathy,and responsiveness (abbreviated RATER),each on a scale from 1 (for very poor)to 10 (for very good).

Question 19

A capital expenditures budget anticipates investments in major assets such as land,buildings,and major equipment.

Accepted Answer

A capital expenditures budget anticipates investments in major assets such as land,buildings,and major equipment.

Question 20

A balance sheet summarizes an organization's overall financial worth,or its assets and liabilities,at a specific point in time.

Accepted Answer

A balance sheet summarizes an organization's overall financial worth,or its assets and liabilities,at a specific point in time.

Quiz 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

A variable budget can be adjusted over time to accommodate pertinent changes in the environment.

A formal financial projection is known as an external audit.

In Deming's PDCA cycle,"D" stands for "do," which means to implement the change or make a small-scale test.

A principle of Deming management is that quality should be aimed at meeting the needs and expectations of the ultimate user.

A variable budget does not allow the allocation of resources to vary in proportion with various levels of activity.

An income statement summarizes an organization's financial results over a specified period of time,such as a quarter or a year.

The singular task of internal auditors is to verify that the organization,in preparing its financial statements,followed generally accepted accounting principles.

Ratio analysis is the practice of evaluating financial ratios to determine an organization's financial health.

One advantage with incremental budgets is that they are flexible in meeting environmental demands.

An external audit is a verification of an organization's financial accounts and statements by the organization's own professional staff.

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point;only incremental changes in the budget request are reviewed.

The two core principles of TQM are people orientation and productivity orientation.

TQM assumes that,if given empowerment,employees will focus on quality.

On her first visit to a new doctor's office,Candace noted the fine furniture in the pristine lobby and the crisp white coats that each of the staff wore.Candace was judging the tangibles dimension of the RATER scale.

TQM assumes that continuous improvement must be an everyday matter and that no improvement is too small.

Only incremental changes in the budget request are reviewed in incremental budgeting.

The point of an audit is to provide a yardstick against which managers can measure performance and make comparisons as with other departments or previous years.

The RATER scale enables customers to rate the quality of service along five dimensions.

A capital expenditures budget anticipates investments in major assets such as land,buildings,and major equipment.

A balance sheet summarizes an organization's overall financial worth,or its assets and liabilities,at a specific point in time.