Chapter 16 Quiz

Which of the following statements concerning the ISO 14000 series is true?

It identifies standards for environmental performance

[blank] focuses on problem solving and performance improvement-speed with excellence-of a well-defined product.

Lean Six Sigma

Within the third step of the control process, [blank] is a principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Management by Exception

Which of the following is the second step of the control process?

Measure Performance

Which level of management is typically responsible for tactical control?

Middle Managers

Controlling

Monitoring performance, comparing it with goals, and taking corrective actions as needed

Leading

Motivating people to achieve organizational goals

Halimax has recently been hired by numerous local governments to handle security at major sporting events. The hiring of Halimax as opposed to using local law enforcement is known as [blank].

Outsourcing

Statistical process control is a statistical technique that uses [blank] from production runs to see if quality is being maintained within a standard range of acceptability.

Periodic Random Samples

Which of the following is an example of the informational area of control?

Production Schedules

Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in [blank].

Reduce Cycle Time

Planning

Setting goals and deciding how to achieve them

Which of the following is NOT a characteristic of a successful control system?

Single Approach

The level of control in which top management monitor performance to ensure that plans are being implemented and take necessary corrective action is known as [blank].

Strategic Control

A [blank] [blank] is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone on the company can understand how their jobs are linked to the overall objectives of the organization.

Strategy Map

True or False: In the service industry, customer satisfaction is often based on perception.

TRUE

Which of the following balanced scorecard perspective asks the question, "How do customers see us?"

The Customer Perspective

Which of the following balanced scorecard perspectives asks the question, "At what must we excel?"

The internal business perspective

Feedback

focuses on collecting performance information after a task or project is complete

Concurrent

focuses on collecting performance information in real time

Feedforward

focuses on preventing future problems

The tow core principles of TQM are people orientation and [blank] orientation.

improvement

A firm's [blank] statement summarizes its financial results (revenues and expenses) over a specific period of time, such as a months, quarter or year.

income

Which of the following is the first step of the control process?

Establish performance standards

Which of the following are basic type of financial statements?

1) Balance Sheet 2) Income Statement

Place the four steps of the control process in their typical order.

1) Establish Standards 2) Measure Performance 3) Compare Performance to Standards 4) Take Corrective Action, if Necessary

What are the indicators that make up the balanced scorecard?

1) Internal Processes 2) Innovation and Improvement Activities 3) Customer Satisfaction 4) Financial Measures

Which of the following statements about the supply chain are true?

1) It is a significant cost for companies 2) It is an important component of business and can impact company finances

Which of the following represent potential actions that a manager may take in the fourth step of the control process?

1) Make No Changes 2) Take Action to Correct Negative Performance 3) Recognize and Reinforce Positive Performance

Identify the component of total quality management (TQM).

1) Make continuous improvement a priority 2) Use accurate standards to identify and eliminate problems 3) Listen to and learn from customers and employees 4) Get every employee involved

Which of the following are barriers to a successful control system?

1) Overemphasis on paperwork 2) Too much Control 3) Too little employee participation in planning

Place the steps in the PDCA cycle in order.

1) Plan desired and important changes based on observed data 2) Implement the change or make a small-scale test 3) Observe what happened after the change or during the test 4) Act on lessons learned after stuudying results

Bureaucratic control is characterized by the use of which of the following to guide performance?

1) Rules 2) Formal Authority 3) Regulations

Which of the following are reasons that control is needed in an organization?

1) To discover errors and irregularities 2) To adapt to change and uncertainty 3) To detect opportunities 4) To reduce costs and increase productivity

The acceptable threshold for quality defects according to Six Sigma standards is 3.4 defects per [blank] products or procedures.

1,000,000

Which of the following is an example of the financial area of control?

An assessment of money owed to suppliers

Organizing

Arranging people, tasks, and resources to accomplish work

Resources that an organization controls, such as cash, inventory, and accounts receivable, are classified on the balance sheet as [blank].

Assets

[blank] are formal verification of an organization's financial and operational systems.

Audits

Greg prepares a financial statement for his business, listing the company's current assets, fixed assets, and the debts that are owed to suppliers and lenders. What document does Greg prepare for his business?

Balance Sheet

A(n) [blank] is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms.

Budget

[blank] improvement is defined as ongoing small, incremental improvements in all parts of an organization.

Continuous

Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed?

Controlling

A company that values innovation and creativity establishes a reward system based on suggestions for improvement and patents. This is an example of a control in the [blank] area.

Cultural

A(n) [blank] in business management is a display of information, such as sales, orders, and costs, in easy-to-read graphics.

Dashboard

[blank] proposed ideas for making organizations more responsive, more democratic, and less wasteful.

Deming Management

[blank] resource planning software systems are information systems for integrating virtually all aspects of a business.

Enterprise

The perspective in the balanced scorecard approach that is concerned with the shareholders' view of organizational performance, such as market share, revenue growth and stock price, is known as the [blank] perspective.

Financial

Which level of management is typically responsible for operational control?

First-Line Managers

Which of the keys to managerial success is Petra using when she adjusts her management style based on the reaction of her employees to a project, and she doesn't employ the same tactics every time?

Flexibility

A company institutes a policy requiring all employees involved in a workplace accident to submit to a mandatory drug test. This is an example of a control in the [blank] area.

Human Resource

Which of the following consists of quality-control procedures companies must install in all facets of their operations that can be audited by independent quality-control experts, or registrars?

ISO 9000

Budget-planning approaches include zero-based budgeting (ZBB), the Planning Program Budgeting System, and [blank] budgeting.

Incremental

[blank] budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point.

Incremental

The balance scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the [blank] perspective.

Innovation and Learning

From 1995 to 2000, productivity grew at an annual rate of 2.5%. Which one of the following factors is thought to have produced that growth?

Investment in information technology

Which of the following statements concerning U.S. productivity between the 1960s and 1995 is accurate?

U.S. productivity decreased over this period

Which of the following best describes the cultural area of control?

Using organizational norms to influence performance

A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount [blank].

cannot be adjusted over time

The second principle of Deming management is [blank].

companies should aim at improving the system, not blaming the workers.

The focus of total quality management (TQM) is [blank], training, and customer satisfaction.

continuous quality improvement

The opposite of bureaucratic control is [blank] control.

decentralized

Reduced cycle time is the direct result of [blank].

decreasing the steps in a work process

The costs required to produce the goods or services of the organization are known as [blank].

expenses

Dicte has a small business making based beaded jewelry. The costs of purchasing the beads, semi-precious stones, clasps, and other supplies used to make the jewelry and the rent on her store are the [blank] of her business, whereas the assets resulting from the sale of her jewelry are the business's [blank].

expenses ; revenues

A(n) [blank] is a formal verification of an organization's financial accounts and statements made by outside experts who are certified public accountants (CPAs).

external audits

Productivity is defined by the formula of outputs divided by [blank] for a specified period of time.

inputs

Verification of a firm's financial and statements by the organization's own professional staff is a(n)

internal audit

The [blank] perspective of the balance scorecard approach examines areas and activities in which the firm currently excels, what it must do to excel in the future, and the processes in which the firm must concentrate its efforts in order to continue to satisfy customers and shareholders.

internal business

Debts or claims by suppliers and lenders against the assets of a company are classified as [blank] on the company's balance sheet.

liabilities

An office park installs security cameras in the parking lot to better ensure the safety of tenants and visitors. This is an example of the [blank] area of control.

physical

The first principle Deming management is the quality should be aimed at [blank].

the needs of the consumer

A budget in which the allocation of resources fluctuates in proportion to different levels of activity during the budget period is known as a(n) [blank] budget.

variable