Management Ch 19

Kieler prepares a financial statement that indicates the "bottom line" for the company. Which of the following has Kieler provided?

Income statement

In reviewing the budget, Drew discovers that actual revenues are significantly below what was budgeted for the quarter. Which of the following is his next step?

Investigate the problem to see whether the organization can improve revenues.

Which of the following is NOT a benefit of open-book management?

It provides numerous rules and policies to guide employees' activities and actions.

Which of the following are the four types of common financial ratios?

Leverage, profitability, liquidity, and activity

The implementation of TQM involves the use of numerous techniques. Which of the following is NOT included among TQM techniques?

Locus of control

Which of the following statements about leverage ratios is true?

Managers track their debt ratio to make sure it does not exceed a level that they consider acceptable.

Which of the following statements about ISO 9000 standards is true?

Many countries and companies require ISO certification before they will do business with an organization.

Six Sigma quality principles provide a highly ambitious quality goal. Which of the following is the specific goal of Six Sigma?

No more than 3.4 defects per million parts

Managers analyze a company's profits by studying profitability ratios. Chayton has been asked to analyze profit relative to assets. Which of the following ratios would Chayton use?

Return on assets

Which of the following is NOT among the four steps of the feedback control model?

Set the organization's strategic goals.

Which of the following actions is part of the first step in the feedback control model, establishing standards?

Setting the number of products to be produced each day

To carry out the control function in a decentralized control system, Morgan would most likely be involved in which of the following actions?

Taking initiative

Which of the following statements about the use of the balanced scorecard in organizational control is true?

The balanced scorecard balances traditional financial measures with operational measures relating to a company's critical success factors.

In order to increase the likelihood that a total quality management program will be successful in a given company, which of the following needs to be true?

The corporate culture values quality and stresses continuous improvement.

Which of the following statements about control in the organizational setting is NOT true?

The essence of control is action that changes predetermined standards to actual operations metrics.

_____ is an organization-wide effort to infuse quality into every activity in a company through continuous improvement.

Total quality management

Which of the following statements regarding a hierarchical versus a decentralized approach to the control process is true?

With decentralized control, the culture is adaptive, and managers recognize the importance of organizational culture for uniting individual, team, and organizational goals.

Which of the following statements about open-book management is true?

With training in interpreting financial data, employees can see the interdependence and importance of each function.

Sean is part of a volunteer group of eight employees who meet regularly to discuss and solve problems that affect the quality of their work. This type of TQM is known as:

a quality circle.

The _____ shows the firm's financial position with respect to assets and liabilities at a specific point in time.

balance sheet

Setting targets for an organization's expenditures, monitoring results and comparing them to the established targets, and making changes as needed are the activities of:

budgetary control.

When Jordan estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations, Jordan is preparing the:

cash budget.

Kelsey is part of a team that has been tasked with a benchmarking study for their organization. After they have planned the study and identified the source of the information to be collected, their next step would be to:

collect the data.

Karter and Avery have introduced their employees to a total quality management approach called kaizen to implement a large number of small, incremental improvements in all areas of the organization on an ongoing basis. Kaizen is also known as:

continuous improvement.

Tanner strongly believes in employee participation and empowerment and has shifted to a _____ rather than a _____ control process.

decentralized; hierarchical

Anticipated and actual expenses for each responsibility center and for the total organization can be found in a(n):

expense budget.

The goal of open-book management is to:

get every employee thinking and acting like a business owner.

In preparing an income statement, you would begin with _____, subtract _____ and other items, and end up with _____.

gross sales; expenses; net income

Kelley's organization has installed a thumb-recognition clock-in device for employees. Although it has reduced the incidence of employees clocking in for coworkers who are running late, employee reactions have been negative. This type of electronic monitoring tends to:

increase hierarchical control.

The central factor for effective organizational control is:

information

In financial analysis, the quick ratio is a popular metric to pair with the current ratio to gauge:

liquidity.

At ATZ Technologies, managers use a hierarchical control system. This type of system has all of the following characteristics EXCEPT:

managers rely on shared goals and values to control employee behavior.

Merry Manufacturing is considering adopting a balanced scorecard approach to its control function. At present, Merry only uses the traditional financial measures of:

net income and return on investment.

Carson listed each employee's daily sales results and whether goals, which were also listed, were met. Through _____, Carson helped employees see how their efforts affected the financial success of the company.

open-book management

The systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance is known as:

organizational control.

The total quality management philosophy focuses on all of the following EXCEPT

process rules and policies.

Another name for an income statement is:

profit-and-loss statement.

The purpose of measuring actual performance is to:

provide data for review against standards.

Joey receives a production report for the month. While reviewing the report, he finds that quality control metrics show product quality to be at the high end of the acceptable range. In this case, step 4 will consist of:

providing reinforcement to workers to encourage current performance levels.

A primary reason for using quality circles is to:

push decision making to an organization level at which recommendations can be made by the people who do the job and know it better than anyone else.

In the approach called _____, quality control personnel work alongside others within a functional area to identify opportunities for quality improvements throughout the work process.

quality partnering

Ellis has authority for preparing budgets and overseeing the activity of the purchasing department. In this scenario, the purchasing department is a:

responsibility center.

Forecasted and actual sales and other income of an organization can be found within the:

revenue budget.

Joey receives a production report for the month. While reviewing the report, he finds that quality control metrics show lower product quality than acceptable. He talks to workers involved in the production process and finds out that they believe the problem is one particular worker who hasn't quite mastered the process. As a result, Joey provides the worker with additional training. In taking corrective action, he has affected:

step 2, by adjusting the performance factor.

Within the four areas of the balanced scorecard, managers identify the _____ to perform the control function for the organization.

targets, measures, outcomes, and corrections

The federal government has mandated that motor carrier companies digitally track the movement and location of their fleets as well as workers' hours. For this requirement, companies use technologies that can wirelessly transmit data from remote sensors and GPS devices to computers for analysis, or:

telematics

Budgets that managers typically use include all of the following EXCEPT:

virtual budgets.

In _____, planning and decision making require a complete justification for every line item in a budget instead of carrying forward a prior budget and applying a percentage change.

zero-based budgeting

What is the balanced scorecard?

A comprehensive management control system

Which of the following contingency factors can influence the success of a TQM program?

All of these answers are correct.

Many countries have adopted a universal benchmark for quality management practices called the ISO 9000 standards. Which of the following explains what these standards represent?

An international consensus of what constitutes effective quality management

Which of the following three types of information are found on the balance sheet?

Assets, liabilities, and owners' equity

Which of the following is unlikely to be found among the standards a company might use in a feedback control model?

Average age of workers

Which of the following two major financial statements provide the starting points for financial control?

Balance sheet and income statement

The company's bank account stands at $25,000. Expenses for payroll, utilities, rent, and suppliers total $40,000. Because expenses have exceeded the company's available cash, what is the company's next step?

Borrow cash to meet its obligations.

Which of the following statements about budgets is NOT true?

Budget reports seldom include the variance between the budgeted and actual amounts for each item.

A survey from the American Management Association found that _____ of employers monitor the Internet use of their employees, track employee keystrokes, and monitor employee e-mail.

43-66 percent

Which of the following appears on the Liabilities and Owners' Equity side of the balance sheet?

Common stock

_____ relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals.

Decentralized control

A balanced scorecard contains which of the following four major perspectives?

Financial performance, customer service, internal business processes, and the organization's capacity for learning and growth