management chap 16
What are the indicators that make up the balanced scorecard?
-innovation and improvement activities -internal processes -customer satisfaction -financial measures
Which three factors are commonly measured using financial ratios?
-liquidity -profitability -turnover
Which choices identify sections of the cash flow statement?
-operating activities -financing activities -investment activities
Which manager actions reinforce good behavior?
-promotions -verbal accolades -raises or bonuses
Which of the following represent potential actions that a manager may take in the fourth step of the control process?
-recognize and reinforce positive performance -make no changes -take action to correct negative performance
Match the step in the control process with its description.
-step 1: the desired performance level for a given goal is established -step 2: actual performance is measured -step 3: measured performance is compared to established standards -step 4: corrective action is taken, if necessary
What are characteristics of the production-run samples used for statistical process control?
-they are taken periodically -they are chosen randomly
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
The acceptable threshold for quality defects according to Six Sigma standards is 3.4 defects per ______ products or procedures.
1,000,000
Which quality control approach combines quality control and efficiency with Industry 4.0?
Lean Six Sigma 4.0
Which of the following is a statistical analysis process that reduces defects in manufacturing and service-related processes and, when fully implemented, attains no more than 3.4 defects per million products or procedures?
Six Sigma
Reduced cycle time is the direct result of ______.
decreasing the steps in a work process
Industry 4.0 is a management perspective that uses ______.
digital transformation technologies
Which category of financial ratios does net sales divided by average total assets fall into?
efficiency
What is the first step of the control process?
establish performance standards
The costs required to produce the goods or services of the organization are known as ______.
expenses
Dicte has a small business making 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 ______ of her business, whereas the assets resulting from the sale of her jewelry are the business's ______.
expenses; revenues
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?
feedback
The ______ perspective of the balanced scorecard asks the question, "How do we look to our shareholders?"
financial
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.
financial
Indicators created by mathematical formulas using a company's financial information for comparison purposes are called ______.
financial ratios
A summary of some aspect of an organization's financial status such as a balance sheet and an income statement is 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.
fixed
Assets not easily converted to cash, such as property, buildings, and equipment, are classified on a firm's balance sheet as ______ assets.
fixed
Why is customer satisfaction so important?
getting new customers costs more than retaining them
Which of the following is a principle of Deming management?
improved quality leads to increased market share, prospects, and employment
A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month, quarter or year.
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.
income statement
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.
incremental
Which type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point?
incremental
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.
innovation and learning
Which perspective in the balanced scorecard approach addresses how the organization can continue to improve?
innovation and learning perspective
Productivity is defined by the formula of outputs divided by ______ for a specified period of time.
inputs
The ______ perspective of the balanced scorecard approach examines such metrics as productivity, efficiency, quality, and safety.
internal business
Quality control ______.
is the strategy for minimizing errors by managing each stage of production
Why are most stakeholders interested in how much cash a company has?
it depicts a company's solvency
Deming management proposed ideas for making organizations more responsive, more democratic, and ______.
less wasteful
Debts or claims by suppliers and lenders against the assets of a company are classified as ______ on the company's balance sheet.
liabilities
Jorge's firm has a mortgage on its factory in the amount of $540,000. It also owes $60,000 to a supplier. How would these amounts be listed on the firm's balance sheet?
liabilities
Within the third step of the control process, ______ 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
Samira receives a written report every six months detailing the production outputs of the warehouse. These reports demonstrate which step in the control process?
measure performance
Which of the following is the second step of the control process?
measure performance
What are basic types of financial statements?
-income statement -balance sheet
In performing concurrent control ______ is typically used.
technology
Which balanced scorecard perspective asks the question, "How do customers see us?
the customer perspective
Which balanced scorecard perspective asks the question, "At what must we excel?"
the internal business perspective
When comparing performance to standards, the acceptable amount of deviation depends on:
the range of variation stated in the first step
At the end of the year, Kavita compares each employee's performance to the standards that were set at the beginning of the year. Which step of the organizational control process does this exemplify?
third
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.
total quality management
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?
total quality management
In the service industry, customer satisfaction is often based on perception.
true
One roadblock that can keep TQM from delivering its intended benefits is the failure to develop a culture of continuous learning.
true
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
variable
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?
variable
Two ways for a company to guarantee quality of a product are quality control and quality _______.
assurance
What type of improvement is defined as ongoing small, incremental improvements in all parts of an organization?
continuous
Match the financial ratio with its correct category descriptor in the other column.
-current ratio: liquidity -asset turnover ratio: efficiency -return on investment ratio: profitability
Match the type of control (on the left) with its definition (on the right).
-feedforward: focuses on preventing future problems -concurrent: focuses on collecting performance information in real time -feedback: focuses on collecting performance information after a task or project is complete
What are the components of total quality management (TQM)?
-get every employee involved -listen to and learn from customers and employees -make continuous improvement a priority -use accurate standards to identify and eliminate problems
Which benefits does the practice of feedforward control provide?
-assists people to make better decisions -helps people learn from mistakes
Which actions should a manager take if performance falls significantly below standards?
-attend to the employee, relaying needed corrective action -make sure employees have the tools to perform their jobs -check to see if standards need revised
How can benchmarking be used to help increase productivity?
-by comparing a business in one industry against a world-class performer in another -by comparing a company against its rivals
According to ______ management, managers should fix an organization's problems by improving its structure, culture, and work rules while treating employees well.
Deming
Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful?
Deming management
Who most needs a control chart?
Gussie noticed employee variation in filling customers' bags of bulk sand; some filled them so full the bag could not be closed, while others were not as full
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
Lean Six Sigma works effectively when focused on:
a well-defined project
What is the name of the orientation of making ongoing, small, incremental improvements in all products, services, functional areas and work processes of an organization?
continuous improvement
The focus of total quality management (TQM) is ______, training, and customer satisfaction.
continuous quality improvement
When Jensen asked his boss, "How many books do we want to sell by November?" he was trying to establish a(n) ______.
control standard
Resources that an organization controls, such as cash, inventory, and accounts receivable, are classified on the balance sheet as _______
assets
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?
balance sheet
Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time?
balance sheet
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.
balanced scorecard
What is the term for the set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action?
best practices
A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms.
budget
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) ______.
budget
The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met.
controlling
Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed?
controlling
Maria operated a taco truck. Each taco ingredient had a corresponding scoop size to monitor portions. Maria noticed that employees were adding more ingredients to tacos when serving pans were full, and fewer ingredients when serving pans were nearly empty. To monitor these serving size variations better, Maria should:
create a control chart
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.
customer
What is commonly measured by how well a product or service lives up to the expectations of those who buy it?
customer satisfaction
A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______.
cannot be adjusted over time
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 ______.
strategy map
When using the management by exception control tool, computer programs alert managers when any part of production is ______.
outside the range of variation
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 ______.
outsourcing
What is defined as the subcontracting of services and operations to an outside vendor?
outsourcing
The two core principles of TQM are ______ orientation and ______ orientation.
people; improvement
Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______.
perception
Which type of performance information does concurrent control collect?
performance in real-time
Statistical process control is a statistical technique that uses ______ from production runs to see if quality is being maintained within a standard range of acceptability.
periodic random samples
The focus of feedforward control is:
preventing future problems
Outputs divided by inputs over a specific period of time equals ______.
productivity
The ability of a product or service to meet customer needs refers to ______.
quality
The two core principles of total ______ management are people orientation and improvement orientation.
quality
The strategy for minimizing errors at each stage of production is called ______.
quality control
Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in ______.
reduced cycle time
Which choice describes the goal focus of a Lean Six Sigma approach?
speed with excellence
Marci rewarded her team with a bonus when she found that their performance exceeded the standards she had set. Which step of the control process does giving the reward represent?
step four
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.
strategy
