chapter 19 mgt 330

A quality circle is a group of _____ volunteer employees.

6 to 12

In today's tough economy, companies are predominantly looking for employees with what types of skills?

A diverse set of skills

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

Activity-based costing

Your department has absenteeism standards, a way to measure absenteeism, and, based on your investigation, you have concluded that your department has an excessive absenteeism rate. What should your next step be?

All of these would be good examples of taking corrective action.

Which of the following is a ratio that measures the firm's internal performance with respect to key activities defined by management?

An activity ratio

What is the key to successful benchmarking?

Analysis

Stella, a systems manager for a large technology company, would like to get an understanding of her company's financial position with respect to assets and liabilities at the end of the fiscal year. Which financial statement should she refer to?

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

_____ indicators focus on production and operating statistics.

Business process

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

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

Corporate governance

_____ refers to the steps taken to complete a company process.

Cycle time

Which of the following is considered a leverage ratio?

Debt ratio

At RWI Distilleries, rules and procedures are used only when necessary. Instead, shared goals and values guide employee behavior. RWI uses what type of organizational control?

Decentralized control

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

Kendra is a manager at George's Goodies. On a regular basis Kendra and her subordinates set individual and organizational goals. This process is similar to which component of the control model?

Establishing performance standards

What is the first step in the feedback control system?

Establishing standards of performance

Ron meets with his company's accountant to discuss the budget of anticipated and actual expenses for each segment of the organization. This involves review of which type of budget?

Expense budget

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

Expense budget

At LBK Industries, responsibility for quality control rests with a team of quality control inspectors and supervisors rather than with employees. LBK uses what type of organizational control?

Hierarchical control

_____ standards represent an international standard for quality management.

ISO 9000

Which of these is based on a set of international standards for quality?

ISO certification

_____ provide the basic information used for financial control of an organization.

Income statements

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

Internal business processes

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

Mistletoe Corporation has a detailed set of organizational goals and management information system that delivers timely and accurate information. Mistletoe still has control problems, however, because its managers refuse to act on the information they receive. Mistletoe's control process has flaws in which of the following areas?

Its ability to take corrective action when necessary

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

Leverage

Which financial control system measures the stock market's estimate of the value of a company's past and projected capital investment projects?

Market value-added

Zachary, a manager at ExecuComp, receives quarterly reports, which track his department's production statistics. However, these reports lack key information regarding reject rates. Which of the following components of the control model need improvement?

Measuring and actual performance

Silver n' Gold Inc. recently introduced a new control philosophy where all employees have access to the same information that owners have, such as what money is coming in and where it is going. This is an example of which control philosophy?

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

_____ refer(s) to the difference between assets and liabilities and is the company's net worth in stock and retained earnings.

Owners' equity

Use of the balanced scorecard can hinder or decrease organizational performance if it is implemented using which type of orientation?

Performance measurement orientation

_____ is(are) most beneficial when employees have challenging jobs.

Quality circles

_____ is any organizational department or unit under the supervision of a single person who is responsible for its activity.

Responsibility center

Tiffany recently discovered that the reject rate for her department has exceeded the standard for performance in this area. What should Tiffany do to exercise effective control?

She should investigate and discover the cause of the problem

Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs?

Six Sigma

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

Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy?

Total quality management

Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs?

Total quality management

Heather belongs to an informal group at work that meets twice a month to discuss common issues and problems in the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an example of:

a quality circle.

The conversion ratio is considered to be a(n) _____ ratio.

activity

According to MANAGER'S SHOPTALK in Chapter 19, the interest in self-awareness is part of a growing discipline called _____.

auto-analytics

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

balance sheet.

Pauline is an area manager at Ironman Gym. She anticipates her area's needs and formulates a proposed budget every quarter. She then sends this proposal to her manager. This is an example of:

bottom-up budgeting.

Madison has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Madison is working on a(n) _____ budget.

capital

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

capital budget

All of the following are major perspectives of the Balanced Scorecard EXCEPT _____.

competitors

It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Stone Construction's management may well be violating the principle of:

continuous improvement.

The _____ is purchase orders divided by customer inquiries.

conversion ratio

The control "system" at FreshFood Corporation is based on the culture of the organization and norms that develop in the individual work teams. This is an example of:

decentralized control.

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

feedback

CyberChasers Corporation sends a post-purchase questionnaire to all consumers who buy their products. They are interested in gathering data on product quality, customer service orientation, and customer satisfaction. This is an example of a:

feedback control.

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

getting employee opinions.

Total quality management:

gives all employees the responsibility for achieving quality goals.

The basic philosophy of control at Nutrients-For-You, Inc. is based on the policies found in the employee handbook, as well as a strict hierarchy of authority. This philosophy is consistent with:

hierarchical control.

Tammy is a production manager at Eagle's Nest, Inc.. She is concerned that too much money is being wasted on inventory that is sitting in the warehouse too long. She should calculate a(n):

inventory turnover ratio.

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.

Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT:

managers wait for big, dramatic innovations.

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

measure actual performance.

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

open-book management

Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating organizational activities to make them consistent with the expectations that are established by managers within the company. This is referred to as _____ control.

organizational

Net income divided by sales is the correct formula for calculating:

profit margin on sales.

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

To reduce the organization's cycle time is to reduce the number of:

steps in an organizational process.

Kyle's work group consistently exceeds the goals the members set for themselves some months ago. In an attempt to better motivate the group, Kyle thought it would be a good idea to set new goals. This is an example of Kyle exercising control by:

taking corrective action.

Contingency factors that can influence the success of a TQM program in a negative way include all of the following EXCEPT:

tasks make high skill demands on employees.

Quality circles are based on the assumption(s) that:

the people who do the job know it better than anyone else.

Decentralized control is usually implemented in all of the following areas EXCEPT:

the quality control department.

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.

A contingency factor that can influence the success of a TQM program in a negative way is that:

union leaders are left out of QC discussions.