Chapter 6: Controls and Control Systems MGT 420 GCU

A(n) __________ measures work efforts that go into a product. a) input standard b) output standard c) transparent control d) leadership control Ans: a

a

A(n)__________ chart is a combination of the critical path method and the program evaluation and review technique. a) CPM/PERT b) Gantt c) Paredo d) project Ans: a

a

The ability to generate cash to pay bills is known as __________. a) liquidity b) leverage c) asset management d) profitability Ans: a

a

The calculation of the point where sales revenues equal total costs is called __________ analysis. a) breakeven b) profit c) loss d) marginal Ans: a

a

The goals set in an MBO process should be a) specific and measurable. b) flexible with regard to deadlines. c) easy to accomplish; to build confidence. d) vague in accountability; to reduce fear. Ans: a

a

The pathway from project start to conclusion that involves activities with the longest completion time is called the __________. a) critical path b) economic order quantity c) purchasing control level d) financial minimum level Ans: a

a

Which of the following financial ratios is the correct formula for the current ratio? a) Current assets-inventory/current liabilities b) Current assets/current liabilities c) Sales/average inventory d) Current assets/total liabilities Ans: b

a

Which of the following is controlled by concurrent controls? a) Work throughputs b) Work inputs c) Work outputs d) Work Clans Ans: a

a

A(n) __________ is a measure of performance results in terms of quantity, quality, cost, or time. a) forecast b) output standard c) input standard d) data base Ans: b

b

A(n)__________ chart graphically displays the scheduling of tasks required to complete a project. a) business b) Gantt c) Paredo d) project Ans: b

b

Ensuring clear directions and needed resources before the work begins refers to ___________ control. a) feedback b) feedforward c) concurrent d) relative Ans: b

b

Ensuring that the final results meet desired standards is called _________ control. a) feedforward b) feedback c) concurrent d) feedmore Ans: b

b

If managers at XYZ, Inc. are utilizing direct supervision and other administrative systems as control mechanisms, they are focusing on which of these controls? a) Internal b) External c) Bureaucratic d) Reward Ans: b

b

Managers need to know that the control process can only begin one way, by a) forecasting. b) establishing objectives and standards. c) measuring actual performance. d) taking necessary action. Ans: b

b

Measuring performance and __________ are parts of the foundation of any control system. a) punishing the guilty b) taking corrective action c) training d) rewarding Ans: b

b

The __________ method places new orders when inventory levels fall to predetermined points. a) master level b) economic order quantity c) purchasing control level d) financial minimum level Ans: b

b

The point at which total revenues equal total costs and profits begin is called the __________. a) profit margin b) breakeven point c) maximum cost point d) marginal revenue point Ans: b

b

The process of focusing on quality in every part of the organization with a philosophy of continuous improvement, and doing things right the first time is called a) quality circles. b) total quality management. c) supply chain management. d) international quality control. Ans: b

b

UPS carefully measures the routes and routines of its drivers to establish the times expected for each delivery. When a delivery manifest is scanned as completed, the driver's time is registered in an electronic performance log that is closely monitored by supervisors. UPS is using __________ comparisons. a) historical b) engineering c) local d) relative Ans: b

b

Which of these refer to a process of joint objective setting and reviews between a superior and a subordinate? a) Management by directives b) Management by objectives c) Performance appraisals d) Salary reviews Ans: b

b

Work inputs are controlled by which controls? a) Feedforward b) Concurrent c) Feedback d) Internal Ans: b

b

A manager stopping by before a shift to see if everything is ready to go for the day is an example of a(n) __________ control. a) steering b) feedback c) feedforward d) concurrent Ans: c

c

At Home Décor, Inc. the production manager requires zero defects on all parts received from its vendors. This is an example of which of these standard/control? a) Output standard b) Feedback control c) Input standard d) Historical standard Ans: c

c

Management by objectives requires all of the following EXCEPT a) a structured process. b) regular communication. c) objectives set by management. d) standards for measurement. Ans: c

c

One time activities with many component tasks that must be completed in proper order and according to budget are called __________ plans. a) business b) strategic c) project d) long-range Ans: c

c

Output standards in business would include: a) the average educational level of employees. b) the quality of the raw materials used to make the product. c) quality ratings of the final product. d) reliability ratings on production equipment. Ans: c

c

The process of always searching for new ways to improve work quality and performance is called __________. a) just-in-time b) supply chain management c) continuous improvement d) quality circles Ans: c

c

The two most common types of objectives in the management by objectives process are work related improvement and __________ objectives. a) strategic b) financial c) personal development d) specific action Ans: c

c

The two types of cost used to determine total costs are __________ and __________. a) minimum; maximum b) direct; indirect c) fixed; variable d) hard; soft Ans: c

c

What is the second most important step in the control process? a) Forecasting b) Establishing objectives and standards c) Measuring actual performance d) Taking necessary action Ans: c

c

Which of these are used to graphically display trends, so that exceptions to quality standards can be identified? a) Instruction manuals b) Equations c) Control charts d) Just-in-time data Ans: c

c

Which of these controls influence behavior through authority, policies, procedures, job descriptions, budgets, and day to day supervision? a) Internal b) External c) Bureaucratic d) Market Ans: c

c

__________ control occurs through self-discipline and self-control. a) Steering b) Feedback c) Internal d) Concurrent Ans: c

c

__________ is the process of ensuring that inventory is only big enough to meet immediate needs. a) Financial planning b) Management control c) Inventory control d) Direct control Ans: c

c

Control that focuses on what is happening during work in process is called _____ control. a) feedforward b) feedback c) feedless d) concurrent Ans: d

d

Focusing on substantial differences between actual and desired performance is called management by ___________. a) design b) principal c) direction d) exception Ans: d

d

Influencing behavior through norms and expectations set by the organization's culture is called __________ control. a) market b) external c) bureaucratic d) clan Ans: d

d

The influence of competition on the behavior of organizations and their members refers to _____ control. a) internal b) clan c) bureaucratic d) market Ans: d

d

The process of measuring performance and taking action to ensure desired results are a part of the management function of a) planning. b) organizing. c) leading. d) controlling. Ans: d

d

When production materials arrive from suppliers as they are required, it is called __________ scheduling. a) on time b) almost on time c) strategic d) just-in-time Ans: d

d

Which of these is NOT needed in order for the second step in the control process to be effective? a) You must be able to conduct accurate measurements. b) You must be timely in the measuring process. c) You must be willing to measure d) You must be able to graph performance objectives and standards Ans: d

d

Which process identifies lessons learned through a completed project, task force assignment, or special operation? a) Performance assignment b) Planning session c) Planning function d) After-action review Ans: d

d

Which type of management makes sure that specific activities required to complete a project are planned well and accomplished on time? a) Business management b) Financial management c) Strategic management d) Project management Ans: d

d