CHAPTER 19

1. Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors? a. Open-book management system b. Market value-added system c. Balanced scorecard d. Activity-based costing system e. Economic value-added system

Balanced scorecard

1. Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations? a. Capital expenditure budget b. Revenue budget c. Profit budget d. Cash budget e. Balance sheet budget

Cash budget

1. Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected? a. ISO certification b. Open-book management c. Balance scorecard d. Corporate governance e. Quality circle

Corporate governance

1. What is the first step in the feedback control system? a. Measuring previous performance b. Establishing strategic objectives c. Taking corrective action d. Establishing standards of performance e. Comparing performance to standard

Establishing standards of performance

1. Which of the following includes anticipated and actual expenses for a responsibility center? a. Capital budget b. Expense budget c. Cash budget d. Revenue budget e. Operating budget

Expense budget

1. Which of the following refers to funding activities with borrowed money? a. ROA b. Liquidity c. Profitability d. Activity e. Leverage

Leverage

1. Which of the following allows employees to see for themselves the financial condition of the company? a. An inappropriate control system b. Activity-based costing c. Market value-added system d. Open-book management e. An economic value-added system

Open-book management

1. Which of the following is the systematic process through which managers regulate organizational activities? a. Strategic regulation b. Organizational goal setting c. Organizational leading d. Strategic planning e. Organizational control

Organizational control

1. Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC? a. Balanced scorecard b. Quality circles c. Six Sigma d. Benchmarking e. Continuous improvement

Six Sigma

1. The firm's financial position with respect to assets and liabilities at a specific point in time is shown by its: a. profitability ratio. b. activity ratio. c. liquidity ratio. d. income statement. e. balance sheet.

balance sheet.

1. The _____ is purchase orders divided by customer inquiries. a. current ratio b. inventory turnover ratio c. conversion ratio d. profit margin on sales e. none of these

conversion ratio

1. The _____ ratio refers to the ability of the organization to meet its current debt obligation. a. growth b. conversion c. activity d. profitability e. liquidity

liquidity

1. According to the control model, after establishing standards of performance the manager should: a. compare performance to standards. b. take corrective action. c. measure actual performance. d. provide feedback. e. get the standards approved by the supervisors and subordinates.

measure actual performance.

1. The goal of _____ is to get every employee thinking and acting like a business owner. a. MBO b. just-in-time inventory systems c. closed-book management d. management-by-walking around e. open-book management

open-book management

1. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a _____. a. work team b. committee c. feedforward control group d. problem team e. quality circle

quality circle