MGMT 3310: Chapter 19

_____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities.

Activity based costing

The firm's financial position with respect to assets and liabilities at a specific point in time is shown by its:

Balance sheet

Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors?

Balanced scorecard

Which of the following is the process of measuring your organizational process against the best in the industry?

Benchmarking

_____ control is the process of setting targets for an organizations expenditures.

Budgetary

The _____ plans future investments in major assets to be depreciated over several years.

Capital Budget

Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations?

Cash budget

= purchase orders / customer inquiries.

Conversion ratio

Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected?

Corporate governance

Which of the following is considered a leverage ratio?

Debt ratio

Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets?

Economic value-added system

What is the first step in the feedback control system?

Establishing Standards of Performance

Which of the following includes anticipated and actual expenses for a responsibility center?

Expense budget

All well-designed control systems involve the use of _____ to determine whether performance meets established standards.

Feedback

All of the following are key steps of setting up feedback control systems EXCEPT:

Giving employee's opinions

_____ standards represent an international standard for quality management.

ISO 9000

In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard?

Internal business processes refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission)

Focusing on how well resources and human capital are being managed for the company's future refers to which component of the balanced scorecard?

Learning and growth

Which of the following refers to funding activities with borrowed money?

Leverage

The _____ ratio refers to the ability of the organization to meet its current debt obligation.

Liquidity

An advantage of the bottom-up budgeting process is:

Lower managers are more involved

The goal of _____ is to get every employee thinking and acting like a business owner.

Open-book management

Which of the following allows employees to see for themselves the financial condition of the company?

Open-book management

Which of the following is the systematic process through which managers regulate organizational activities?

Organizational Control

A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a _____.

Quality Circle

Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC?

Six Sigma

For control, this type of measure is an important part of achieving higher performance.

Statistical

Brad is a department manager at Home Theater, Inc. His sole role in the budget process is to implement the budget that is developed for him. This is an example of:

Top-down budgeting is a budgeting method in which senior management develops a high-level budget for the company.

According to the control model, after establishing standards of performance the manager should:

measure actual performance