MAN3025 Chapter 16

Place the four steps of the control process in their typical order, from first (at the top) to last (at the bottom).

1. Establish standards. 2. Measure performance. 3. Compare performance to standards. 4. Take corrective action, if necessary.

Match the type of control (on the left) with its definition (on the right). 1. Feedforward 2. Concurrent 3. Feedback

1. Feedforward: Focuses on preventing future. 2. Concurrent: Focuses on collecting performance information in real time. 3. Feedback: Focuses on collecting performance information after a task or project is complete.

Match the step in the control process with its description. 1. Step 1 2. Step 2 3. Step 3 4. Step 4

1. Step 1: The desired performance level for a given goal is established. 2. Step 2: Actual performance is measured. 3. Step 3: Measured performance is compared to established standards. 4. Step 4: Corrective action is taken, if necessary.

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 is Greg preparing for his business? A. Balance sheet B. Operating budget C. Annual report D. Income statement

A. Balance sheet

What are basic types of financial statements? (Choose every correct answer.) A. Balance sheet B. Financial budget C. Ratio analysis D. Income statement

A. Balance sheet D. Income statement

Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed? A. Controlling B. Planning C. Organizing D. Leading

A. Controlling

Which type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point? A. Incremental B. Informal C. Fixed D. Production

A. Incremental

Which perspective in the balanced scorecard approach addresses how the organization can continue to improve? A. Innovation and learning perspective B. Customer perspective C. Internal business perspective D. Financial perspective

A. Innovation and learning perspective

What are some of the downsides to electronic monitoring of employees? A. It is intrusive. B. Employees may leave the job. C. It places too much trust on employees. D. Data can be misused.

A. It is intrusive. B. Employees may leave the job. D. Data can be misused.

What are the components of total quality management (TQM)? (Choose every correct answer.) A. Listen to and learn from customers and employees. B. Focus on problem solving and performance improvement. C. Jointly establish SMART goals with employees. D. Make continuous improvement a priority. E. Use accurate standards to identify and eliminate problems. F. Get every employee involved.

A. Listen to and learn from customers and employees. D. Make continuous improvement a priority. E. Use accurate standards to identify and eliminate problems. F. Get every employee involved.

What is defined as the subcontracting of services and operations to an outside vendor? A. Outsourcing B. Benchmarking C. Decentralization D. TQM

A. Outsourcing

As a property manager for a large office complex, Alisha develops a projection of the costs that will be incurred over the next 12 months, such as landscape expenses, snow removal, insurance, and repairs. Alisha has prepared a(n) ______. A. budget B. ratio analysis C. annual report D. audit response

A. budget

A summary of some aspect of an organization's financial status such as a balance sheet and an income statement is a ______. A. financial statement B. strategy map C. fixed budget D. balanced scorecard

A. financial statement

A(n) ______ budget is where resources are allocated on a single estimate of costs, also known as a static budget, and that budget amount cannot be adjusted over time. A. fixed B. variable C. austerity D. dynamic

A. fixed

Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the budgeting approach known as ______ budgeting. A. incremental B. zero base C. supplementary D. marginal

A. incremental

Productivity is defined by the formula of outputs divided by ______ for a specified period of time. A. inputs B. processes C. capital D. labor

A. inputs

Outputs divided by inputs over a specific period of time equals ______. A. productivity B. service C. dividends D. cash

A. productivity

Which of the following assets would be categorized as current assets on a firm's balance sheet? A. Buildings B. Accounts receivable C. Equipment D. Cash E. Treasury bills

B. Accounts receivable D. Cash E. Treasury bills

What are the indicators that make up the balanced scorecard? A. Employee engagement B. Customer satisfaction C. Financial measures D. Internal processes E. Innovation and improvement activities

B. Customer satisfaction C. Financial measures D. Internal processes E. Innovation and improvement activities

What do critics fear may result from employee monitoring programs? A. Increased product defects B. Loss of privacy C. Inappropriate workplace relationships D. Reduction of the supply chain

B. Loss of privacy

Which balanced scorecard perspective asks the question, "How do customers see us?" A. The innovation and learning perspective B. The customer perspective C. The internal business perspective D. The financial perspective

B. The customer perspective

What is true about product recalls in the 21st century? A. They cost companies almost nothing. B. They have cost businesses billions of dollars. C. They have been eliminated by improved manufacturing techniques. D. They are the result of "smart" manufacturing.

B. They have cost businesses billions of dollars.

Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this represent? A. Fixed B. Variable C. Marginal D. Incremental

B. Variable

Resources that an organization controls, such as cash, inventory, and accounts receivable, are classified on the balance sheet as ______. A. claims B. assets C. liabilities

B. assets

The ______ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures. A. external audit B. balanced scorecard C. RATER scale D. balance sheet

B. balanced scorecard

A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms. A. statement B. budget C. trajectory

B. budget

The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met. A. leading B. controlling C. planning D. organizing

B. controlling

The ______ perspective on the balanced scorecard approach focuses on the analysis of different types of customers, their level of satisfaction, and the processes used to deliver products and services to customers. A. producer B. customer C. innovation D. financial

B. customer

The ______ perspective of the balanced scorecard asks the question, "How do we look to our shareholders?" A. internal business B. financial C. innovation and learning D. customer

B. financial

The balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the ______ perspective. A. financial B. innovation and learning C. customer D. internal business

B. innovation and learning

Deming management proposed ideas for making organizations more responsive, more democratic, and ______. A. smaller B. less wasteful C. more hierarchical D. better controlled

B. less wasteful

Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______. A. client interaction B. perception C. price D. personality

B. perception

Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in ______. A. increased manpower requirements B. reduced cycle time C. unhappy robots D. decreased customer interaction

B. reduced cycle time

A _______ map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization. A. goal B. strategy C. performance

B. strategy

Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful? A. ISO 9000 B. Six Sigma C. Deming management D. Total quality management (TQM)

C. Deming management

What is the first step of the control process? A. Compare performance to standards. B. Take corrective action, if necessary. C. Establish performance standards. D. Measure performance.

C. Establish performance standards.

Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control? A. Concurrent B. Tactical C. Feedback D. Primacy

C. Feedback

What are key inhibitors to implementing TQM successfully? A. The emergence of a champion who takes responsibility for leading the implementation B. The adoption of a system to track the results of the TQM program C. The inability to develop a culture of quality D. The failure to provide evidence supporting previous improvement activities

C. The inability to develop a culture of quality D. The failure to provide evidence supporting previous improvement activities

Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction? A. Statistical process control B. Deming management C. Total quality management D. ISO 9000

C. Total quality management

When Jensen asked his boss, "How many books do we want to sell by November?" he was trying to establish a(n) ______. A. upper bound B. corrective action C. control standard D. unrealistic expectation

C. control standard

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 ______ perspective. A. customer B. internal business C. financial D. innovation and learning

C. financial

A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month, quarter or year. A. balance B. fiscal C. income

C. income

A(n) ______ summarizes an organization's financial results (revenues and expenses) over a specified period of time, such as a quarter or a year. A. stockholder's report B. audit C. income statement D. balance sheet

C. income statement

A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______. A. RATER scale B. strategic plan C. strategy map D. balance sheet

C. strategy map

Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time? A. Capital expenditure budget B. Income statement C. Ratio analysis D. Balance sheet

D. Balance sheet

Two ways for a company to guarantee quality of a product are quality control and quality ______. A. efficiency B. feedback C. benchmarking D. assurance

D. assurance

A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______. A. must be adjusted over time B. is often adjusted over time C. is adjusted frequently during the budget period D. cannot be adjusted over time

D. cannot be adjusted over time

The focus of total quality management (TQM) is ______, training, and customer satisfaction. A. enhanced profitability B. resource planning C. process efficiency D. continuous quality improvement

D. continuous quality improvement

Reduced cycle time is the direct result of ______. A. introducing outsourcing into the work process B. increasing the quality of training programs C. cutting the number of workers required to complete a job D. decreasing the steps in a work process

D. decreasing the steps in a work process

Halimax has recently been hired by numerous city governments to handle security at major sporting events. The hiring of Halimax rather than relying on the city police force is an example of ______. A. benchmarking B. enterprise resource planning C. strategic control D. outsourcing

D. outsourcing

The ability of a product or service to meet customer needs refers to ______. A. inventory B. benchmarking C. continuous improvement D. quality

D. quality

The four components of ______ are to make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to identify and eliminate problems. A. the management process B. change management C. budget auditing and control D. total quality management

D. total quality management

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) ______ budget. A. informal B. incremental C. forecast D. variable

D. variable

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

True

True or false: One roadblock that can keep TQM from delivering its intended benefits is the failure to develop a culture of continuous learning.

True

Practices that use artificial intelligence to reduce defects, shorten downtimes, and facilitate transitions are called _______ manufacturing.

smart