MAN Quiz 14 Multiple Choice
A(n) _____ includes anticipated and actual income for a responsibility center. A. revenue budget B. top-down budget C. expense budget D. capital budget
A
At Leif's company, the culture reflects an obsession with rules and a bureaucracy that can excel at turning chaos to order. Management monitors employees' behavior and influences them through policies and position power. Which of the following types of control philosophy does Leif's company use? A. Hierarchical B. Open-book management C. Decentralized D. Horizontal
A
During planning and decision making, Jessica uses an approach that requires a complete justification for every line item in a budget, instead of carrying forward a prior budget and applying a percentage change. The approach is known as: A. zero-based budgeting. B. inflation-based budgeting. C. incremental budgeting. D. top-down budgeting.
A
Financial statements provide the basic information used for financial control of an organization. What two major financial statements are the starting points for financial control? A. Income statement and balance sheet B. Profit-and-loss statement and cash flow statement C. Income statement and liquidity ratios D. Balance sheet and leverage ratios
A
Fiona has been working with the employees in her small catering business, showing them how she tracks expenses and revenues, showing them how their efforts contribute to the growing business, and asking them for ideas for ways to improve. Through her open-book management approach, which of the following goals is Fiona working toward here? A. To get every employee thinking and acting like a business owner B. To use top-down authority and position power C. To enforce the formal control systems in place D. To increase and emphasize extrinsic rewards
A
For managers to have effective organizational control, which of the following factors is important? A. Having the correct data B. Creating the glass ceiling policy C. Increasing the team size D. Having free riders on a team
A
In Murphy's department, he uses _____ so that employees can see for themselves, via charts, printouts, and meetings, how their jobs fit into the big picture and affect the financial future of the company. A. open-book management B. hierarchical methods C. his power position D. a market value-added system
A
In a _____ budgeting process, lower-level managers budget their departments' resource needs and pass them up to top management for approval. A. bottom-up B. zero-based C. top-down D. cash
A
In composing her monthly management report, Soledad notices that quality improvement targets have not been reached. She is not overly concerned for this month because the department has a new line manager, but she will certainly be reviewing progress during the coming month for those targets. Which of the following steps of feedback control is Soledad engaged in here? A. Comparing performance to standards B. Measuring actual performance C. Establishing standards of performance D. Taking corrective action
A
In order to balance traditional financial measures with operational measures relating to their critical success factors, many companies have begun using a _____ approach as an organizational control system. A. balanced scorecard B. glass ceiling C. punctuated equilibrium model D. statistical model
A
In which of the following situations would TQM likely be most successful? A. When it enriches jobs and improves employee motivation B. When problems to be solved are frequent and common C. When employees are engaged in simple jobs D. When quality circles focus on social activities
A
Malachi has just completed a budget that lays out the forecasted and actual costs for the year. Which of the following types of budget is Malachi working with? A. Expense budget B. Revenue budget C. Bottom-up budget D. Capital budget
A
Managers focus on variances during the _____ step of the feedback control process. A. comparing performance to standards B. measuring actual performance C. establishing standards of performance D. taking corrective action
A
Naomi's company recently had a bad batch of product that it had to scrap. This lost income represents a large unexpected expense. What ratio does Naomi need to calculate to know whether the company's liquidity can handle this setback? A. Quick ratio B. Inventory turnover C. Conversion ratio D. Return on assets
A
Navarro set up his new company so that the way in which it was governed protected the interests of its corporate owners. Which of the following kinds of system does he use? A. Corporate governance B. Quality circle C. Balanced scorecard D. ISO certification
A
Petra is trying to explain to a coworker the difference between hierarchical and decentralized control as their organization makes the shift from one to the other. Which of the following statements might Petra use to describe hierarchical methods of control? A. They rely on task-related job descriptions and detailed rules and procedures. B. They place emphasis on employee participation in a wide range of areas. C. They place great emphasis on the selection of employees. D. They rely on the intrinsic rewards of meaningful work.
A
Sophia and Alex are collaborating to plan a benchmarking process. Which of the following activities would they engage in first? A. Identifying the characteristics of a product that influence customer satisfaction B. Analyzing the benchmarking data that have been collected C. Implementing recommendations and then monitoring them D. Identifying the source of the information to be collected
A
The goal of organizational control can best be summed up by which of the following statements? A. Regulating organizational activities through systematic processes to make them consistent with the established expectations B. Performing the task or activity that one has been assigned C. Regulating an organization exclusively by using social media tools, including mobile technologies and social networking D. Matching the needs, interests, and values that individuals and organizations offer each other
A
The success of a TQM program can be affected by numerous contingencies. Which of the following is typically a positive factor in TQM success? A. Tasks make high skill demands on employees. B. Middle managers are satisfied with loss of authority. C. Managers wait for big, dramatic innovations. D. Workers are dissatisfied with other aspects of organizational life.
A
Which of the following factors would NOT be a primary concern for managers in establishing organizational control? A. Deciding how to respond to competitors' market moves B. Deciding how they will obtain essential information C. Deciding what information is essential D. Deciding how they can and should respond to essential information they have obtained
A
Which of the following is NOT one of the four major perspectives of the balanced scorecard? A. Business strategies B. Customer service C. Financial performance D. Organization's capacity for learning and growth
A
Which of the following statements about the International Organization for Standardization is true? A. ISO 9000 standards represent a universal benchmark for quality management practices. B. The United States and 187 other countries have been ISO 9000 certified. C. Its headquarters are in Brussels, Belgium. D. Few countries and companies require ISO certification before they will do business with an organization.
A
Which of the following would be considered a basic assumption of hierarchical control? A. Employees are incapable of self-discipline and cannot be trusted. B. Employees work best when they are self-monitored rather than closely controlled. C. Employees work best when they are fully committed to the organization. D. Employee turnover is low.
A
A balanced scorecard: A. relies on using a performance measurement orientation to improve organizational performance. B. focuses on markets and customers, employees and financials. C. focuses solely on an organization's internal business processes. D. relies entirely on financial measures.
B
Better internal monitoring to reduce the risk of fraud, certification of financial reports by top leaders, improved measures for external auditing, and enhanced public financial disclosure are all features of the: A. Taft-Hartley Act. B. Sarbanes-Oxley Act. C. McCain-Feingold Act. D. Gramm-Rudman-Hollings Act.
B
Corporate governance refers to: A. a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs. B. the framework of systems, rules, and practices by which an organization ensures accountability with stakeholders. C. any organizational department or unit under the supervision of a single person who is responsible for its activity. D. an organization-wide effort to infuse quality into every activity in a company through continuous improvement.
B
Eva's department takes calls from customers who are having issues with their service. At the end of each call is an opportunity for the customer to complete an automated survey to rate the service the customer received. The data collected from these surveys become part of the balanced scorecard. Which of the following perspectives of the balanced scorecard is addressed here? A. Internal business processes B. Customers C. Financials D. External business processes
B
Garrett is the manager of a small production line. He is assessing what outcomes and standards he needs to measure to make sure his department is performing as efficiently as possible. He also wants to provide a way to monitor these standards and outcomes. Garrett is concerned with his department's: A. corrective actions. B. organizational control. C. quality metrics. D. feedback.
B
Gloria is a lower-level manager at Techno Industrial Supply. The company takes a traditional approach to budgeting in that budgeted amounts for the coming year are prescribed by upper-level management. This type of budgeting approach is known as: A. cash budgeting. B. top-down budgeting. C. bottom-up budgeting. D. capital budgeting.
B
Hugh just finished a meeting with executives regarding the performance targets they have set for the coming year. As a department manager, Hugh must set the methods his employees will use to report on the progress toward these goals. Which of the following steps of feedback control is Hugh engaged in here? A. Comparing performance to standards B. Measuring actual performance C. Establishing standards of performance D. Taking corrective action
B
In Zenia's approach to budgeting, every dollar added to the budget reflects an actual, documented need. In this way, all other activities are essentially discretionary and optional. This _____ helps Zenia control excessive and unnecessary costs in the yearly expenditures. A. cash budgeting B. zero-based budgeting C. bottom-up budgeting D. capital budgeting
B
June wants to know her organization's ability to meet its current debt obligations. What ratio would she consult? A. Activity ratio B. Leverage ratio C. Liquidity ratio D. Profitability ratio
B
Quality circles: A. are based on a hierarchical control philosophy. B. consist of 6-12 volunteer employees. C. push decision making exclusively to the top management levels. D. increase employee commitment through recreational activities.
B
The bottom line of an income statement shows: A. three types of information: assets, liabilities, and owners' equity. B. the net income—profit or loss—for the given time period. C. the firm's financial position at a specific point in time. D. liquidity and profitability ratios.
B
The final step of the feedback control model is to: A. measure actual performance. B. take corrective action. C. compare performance to standards. D. establish performance standards.
B
The total number of ISO 9000 certifications is highest in: A. China. B. Europe. C. the United States. D. South America.
B
What is the calculation for determining an organization's profit margin on sales? A. Current assets/Current liabilities B. Net income/Sales C. Total debt/Total assets D. Total sales/Average inventory
B
Which of the following is NOT one of the three types of information provided by the balance sheet? A. Owners' equity B. Cash flow C. Assets D. Liabilities
B
Which of the following is an activity ratio used to compare the organization's performance with earlier data or industry norms? A. Gross margin B. Inventory turnover C. Current ratio D. Debt ratio
B
Which of the following statements about open-book management is true? A. It is not highly compatible with global accounting standards. B. It ties employee rewards to the company's overall success. C. It operates best in cultures where the prevailing attitudes encourage confidentiality. D. It is most compatible in organizational cultures with extensive use of rules, policies, and hierarchy of authority.
B
_____ is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs. A. A quality circle B. Six Sigma C. Benchmarking D. Continuous improvement
B
A balanced scorecard includes traditional measures such as net income and return on investment as a key performance measure of the organization's activities that contribute to improving short- and long-term financial performance. This aspect of the balanced scorecard is the: A. customer service perspective. B. manufacturer selection perspective. C. financial performance perspective. D. supplier quality perspective.
C
Austin is a department manager at Wilderness Retreats. His role in the budget process is to anticipate the needs of his department and to convey those needs in a report to upper management. This is an example of: A. top-down budgeting. B. zero-based budgeting. C. bottom-up budgeting. D. capital budgeting.
C
Because of the control system Ingrid has put in place, the employees are taking initiative and are actively engaged in their work. Their commitment is evident as they seek greater responsibilities, and turnover is low. Which of the following types of control system is used at Ingrid's company? A. Hierarchical B. Balanced scorecard C. Decentralized D. Vertical
C
Douglas S. Sherwin believed that control is _____ that allow(s) for adjustments to operations to bring them in line with predetermined standards. A. strict rules and management policies B. employee rewards C. information in the hands of managers D. employee involvement in decision making
C
How do most organizations measure and control performance? A. With auto-analytics B. With qualitative financial measures C. With quantitative financial measures D. With personal metrics
C
How is gross margin calculated? A. Purchase orders/Customer inquiries B. (Cash + Accounts receivable)/Current liabilities C. Gross profit/Sales D. Total debt/Total assets
C
In a review of the organization's expenses, Bjorn notices they are below the budgeted amount. What does this difference signal to Bjorn? A. The need for the organization to invest in major assets B. Faster growth of sales than anticipated C. Failure to meet some other standards, such as a desired level of sales or quality of service D. The need to determine whether the organization can obtain the necessary resources to meet the higher-than-expected demand for its products or services
C
In countries with prevailing attitudes and standards that encourage confidentiality, managers of multinational companies operating there may encounter difficulties. Two countries with secretive economies that rate high on the opacity index include: A. Finland and Ireland. B. Canada and the United States. C. Russia and India. D. Japan and Hong Kong.
C
Milos wants to improve quality in his company, which manufactures hose connectors. He is currently working to identify the best practices and companies who use them within his industry. In which of the following TQM practice is he engaged? A. Kaizen B. Quality circle C. Benchmarking D. Six Sigma
C
The SEC now requires that companies justify their board structure in _____ to ensure that boards are designed in a way to provide needed oversight of management actions. A. ISO 9000 standards B. transparency C. proxy statements D. economic certification
C
The goal of open-book management can best be described as: A. structured opportunities for more female employees to move up to the top levels of management. B. a philosophy that asserts people are incapable of self-discipline and cannot be trusted with financial management. C. showing an individual employee how his or her job fits into the big picture and affects the financial future of the organization. D. combined autocratic and democratic styles of management.
C
What is the main purpose of an innovative reporting system called auto-analytics? A. Search for the newest innovation among competitors B. Collect financial data related to the market C. Provide information for individuals to help them control their personal growth D. Carry out a complete overhaul of the organization's control system
C
Which of the following statements best describes how a balance sheet is different from an income statement? A. A balance sheet is more commonly known as a profit-and-loss statement. B. A balance sheet provides three types of information: revenue, expenses, and owners' equity. C. A balance sheet shows the firm's financial position with respect to assets and liabilities at a specific point in time. D. A balance sheet shows revenues coming into the organization from all sources and subtracts all expenses.
C
Which of the following would be considered a basic assumption of decentralized control? A. Employees are incapable of self-discipline and cannot be trusted. B. Employees prefer the detailed rules and procedures of a top-down hierarchy. C. Employees work best when they are fully committed to the organization. D. Employee turnover is high.
C
_____ is a universal benchmark for quality management practice. A. NASDAQ B. NAAQS C. ISO 9000 D. ASTM
C
After managers establish performance standards, the next step in the feedback control model is: A. take corrective action to reduce performance defects. B. compare performance to standards. C. implement performance improvement recommendations. D. measure actual performance.
D
Being defect-free 99.9997 percent of the time is known as: A. kaizen. B. quality circle. C. green power. D. Six Sigma.
D
Claude wants to know what the activity ratio is for his department. What calculation would he need to make? A. Current assets/Current liabilities B. Net income/Sales C. Total debt/Total assets D. Total sales/Average inventory
D
In order to implement continuous improvement within her organization, Inez will need to train workers to: A. identify the objectives of the benchmarking study. B. use open-book management. C. function in a hierarchical structure. D. make small, incremental improvements on an ongoing basis.
D
In reviewing the balanced scorecard for his department, Abanu is disappointed in the numbers regarding how well resources and human capital are being managed for the company's future. Which of the following components of the balanced scorecard do these metrics address? A. Financial performance B. Customer service C. Internal business processes D. Potential for learning and growth
D
In the third step of the feedback control model, management must deal with performance that deviates from the standard. In addition to objective analysis of performance data, effective management in this step also involves which of the following? A. A balanced scorecard B. Providing reinforcement of standards C. Setting adequate standards D. Subjective judgment and employee discussions
D
Lucy is preparing an expense budget for her responsibility center. Which of the following best describes this expense budget? A. It estimates receipts and expenditures of money on a daily or weekly basis to ensure sufficient cash flow. B. It shows only overall expenses and not categorical expenses. C. It shows only expenses of a single category or department. D. It includes anticipated and actual expenses for each responsibility center.
D
Marina is a quality control employee assigned to work alongside employees in the printing production area in order to detect and address defects early and identify opportunities for quality improvements within the process. This approach to quality improvement is known as: A. benchmarking. B. a quality circle. C. Six Sigma. D. quality partnering.
D
Petra is trying to explain to a coworker the difference between hierarchical and decentralized control as their organization makes the shift from one to the other. Which of the following statements might Petra use to describe decentralized methods of control? A. They rely on task-related job descriptions and detailed rules and procedures. B. They distrust cultural norms as means of control. C. They use top-down authority and position power. D. They rely on the intrinsic rewards of meaningful work.
D
Planned investments in major assets such as buildings, trucks, and heavy machinery, often involving expenditures over more than a year, appear on a: A. cash budget. B. top-down budget. C. bottom-up budget. D. capital budget.
D
Soren wants to track quality in his company by measuring his organizational process against the best in the industry. Which of the following approaches should Soren use? A. Continuous improvement B. Environmental analysis C. Outsourcing D. Benchmarking
D
The implementation of total quality management involves the use of many techniques. Which of the following would not be included among those techniques? A. Continuous improvement B. Six Sigma principles C. Quality circles D. Open-book management
D
What is the fundamental unit of analysis for a budget control system called? A. Project center B. Process center C. Income center D. Responsibility center
D
Which of the following characteristics does NOT apply to open-book management? A. It ties employee rewards to the company's overall success. B. It allows employees to see for themselves the financial condition of the company. C. It shows the individual employee how his or her job fits into the big picture. D. It contains four perspectives: financial performance, customer service, internal business processes, and the organization's capacity for learning and growth.
D
Which of the following is essential for effective control within an organization? A. Large-sized, homogenous teams B. Centralized and rigid management approaches C. Leaders with autocratic leadership skills to exert hierarchical control D. Information about performance standards and actual performance
D
Which of the following statements about U.S. companies and ISO 9000 certification is true? A. ISO certification has yet to become the recognized standard for evaluating and comparing companies in the United States. B. ISO 9000 standards constitute effective quality management as outlined by the International Organization for Standardization in Atlanta, Georgia. C. The United States continues to lead in the total number of certifications. D. More U.S. companies are feeling the pressure to participate to remain competitive in international markets.
D
Which of the following statements best describes total quality management (TQM)? A. With TQM, specialized departments in organizations are responsible for quality control. B. After its successful implementation by U.S. companies, TQM became highly popular in Japan. C. A hierarchical control philosophy provides the basis for all things TQM. D. The focus of TQM is on teamwork, increasing customer satisfaction, and lowering costs.
D
Zayden is worried that his department has spent too much on equipment. What ratio should he calculate to determine the company's ability to generate earnings with these investments? A. Quick ratio B. Inventory turnover C. Profit margin on sales D. Return on assets
D
_____, one of the most commonly used methods of managerial control, sets targets for an organization's expenditures, monitors results and compares them to the budget, and makes changes as needed. A. Continuous improvement B. Quality circles C. Responsibility centers D. Budgetary control
D
