MGMT 300E Final Chapter 14

According to your text, strategic control is especially critical for which type of organizations?

International

Where would you expect to find the following information: "ACME Insurance Company has $450 million dollars worth of assets"?

balance sheet

All of the following are characteristics of an effective control system EXCEPT

developed and implemented by top management.

Retained earnings are part of ____ control of an organization.

financial

Nicole has been working extra hours, but she is not getting paid overtime. She started a log of how she is spending those hours so she can convince her boss to pay her more or hire additional staff. She is using ____ to overcome resistance

verification procedures

Which of the following financial documents shows a listing of all the organization's assets and liabilities at a given point in time?

Balance sheet

Two years after purchasing a home, Victor received a check in the mail from his attorney. An accountant had found a discrepancy. The accountant conducted a(n)

Internal audit

Public relations is part of ____ control.

information

Organizations make the decision to have a centralized or decentralized international control system when they are addressing issues of ____ control.

strategic

Which of the following statements about financial audits is true?

a. They are independent appraisals. b. They may be internal or external to the organization. c. They may be used to monitor accounting, financial, and operation systems within an organization. d. They may be conducted on a continual or an intermittent basis. e. ALL OF THESE

nternational firms, which use a ____ strategic control system keep ____ decision-making power in their headquarters, while firms that use a ____ strategic control system give ____ decision-making power to each local facility.

centralized; more; decentralized; more

Businesses that use H-form or M-form organizational design may have several ____ who are responsible for helping line managers with their control functions, for coordinating the organization's overall control system, and for gathering and assimilating relevant information.

controllers

Which of the following would be viewed as a measure of the firm's ability to meet its long-term financial obligations?

debt ratio

Johnson & Johnson does not require its various divisions to report in frequently. It believes in letting each manager have the authority to respond quickly to environmental changes. These changes do not have to be approved by Johnson & Johnson before they are implemented. Johnson & Johnson has ____ strategic control.

decentralized

Anu is comparing the performance of her small landscaping business against the standards she established. When she has finished her comparisons, any of the following actions may be appropriate EXCEPT

eliminate the control standards

The purpose of bureaucratic control is to

get employee compliance.

Standards used in organizational control are most like

goals.

Performance appraisals are part of ____ control.

human

One way managers can improve the effectiveness of the control system is to

integrate control with planning.

When General Mills entered the yogurt market by buying Yoplait, it stated that it wanted to achieve sales of $50 million in five years. It was

integrating planning with control.

Stephanie makes handcrafted jewelry. She knows her inventory and how long it takes her to make each piece of jewelry. She knows how many days she has to fill an order. She is making a ____ budget. a. capital expenditure

labor

The ____ explicit and the ____ precise the link between planning and control, the ____ effective the control system.

less; less; less

If Disney wants to focus on the marketing strength of its theme parks, it will use ____.

operating ratios

A math teacher at Princeton high school dismisses her students one at a time. It is driving the students crazy. The teacher has

overcontrol

A company that carefully evaluates job applicants is using ____ control.

preliminary

A(n) ____ compares different elements of a balance sheet and/or an income statement to one another. a. income statement

ratio analysis

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan, tuition and fees, alumni contributions, and research grants. This is an example of a(n) ____ budget.

revenue

A waitress who checks on you after you have tasted the food, but before the bill, is part of a

screening control.

American Greeting Corp. reported that its "sales have been hurt by people increasingly using the Internet to communicate" and by "lower-priced competition including Hallmark's Warm Wishes line of 99-cent cards." As a result, it decided to lay off 13 percent of its full-time workforce. This need for cost-cutting measures would have been detected by its ____ system.

strategic control

The report issued about the space shuttle Columbia disaster showed a culture at NASA that did not listen when small safety issues were raised. Each issue by itself might not have caused the disaster. However, this example illustrates

why control is necessary to reduce the accumulation of errors.

When classifying controls on the basis of the resources involved, we find that one class of resources is related to the control of all other resource classes as well. Which resource class overlaps all other classes?

Financial resources

Which of the following is NOT a major form of operations control discussed in the text?

Functional

Which type of financial statement summarizes the organization's revenues and expenses over the previous year?

Income statement

Which of the following is the most common means of financial control within organizations?

Budgets

Which of the following statements does NOT describe a weakness associated with budgeting?

Budgets link planning and controlling.

You are a banker reviewing a loan application from a local business. Which of the following ratios would you look at to get a quick measure of the business's ability to meet its long-term financial obligations?

Debt ratio

____ control is characterized by ____ rules and a(n) ____ structural arrangement.

Decentralized; informal; organic

Which of the following is NOT characteristic of the bureaucratic approach to organizational control?

Reliance on group norms

Which of the following is NOT characteristic of the bureaucratic approach to organizational control?

Reliance on group norms (same question on there twice with different answer choices)

Angela has worked hard to encourage change in Jeffrey's performance, but he is not changing. Angela documented counseling that expresses displeasure with his work. What type of control does this action represent?

Screening

As the product being produced becomes more complex, which of the following types of operations controls would logically become more important?

Screening

McDonald's has determined how small onion should be chopped and how much should be put on a hamburger. Which step in the control process does this represent?

Setting performance standards

Which of the following is a characteristic of screening controls?

Take place during the transformation process

A math teacher at Princeton high school dismisses her students one at a time. It is driving the students crazy. If the teacher encouraged ____ it could help reduce resistance to control.

participation

During the recession, many organizations eliminated staff positions in order to decrease expenses. This is an example of ____ control.

structural

Although many organizations have moved away from this practice, traditionally organization budgets were developed by

the controller and top managers.

Which of the following are important elements of decentralized control?

Only group norms and employee responsibility.

Postaction controls are applied to what part of a system?

Outputs

Preliminary control can be used with ____ resources.

a. human b. financial c. physical d. information E. ALL OF THESE

Kristen owns and operates a photography studio. A banker would want to look at her company's ____ ratios to determine if she can make interest payments on a business loan.

coverage

Sales forecasting, economic forecasting, and environmental analysis are examples of the control of

information resources

The ratios that assess the ease with which the assets of the organization can be converted into cash are

iquidity ratios.

Maintaining the optimal amount of inventory is part of ____ control.

physical

St. Paul's church counts the attendance at worship services to help measure satisfaction in the congregation. This is an example of a ____ control.

postaction

T J Maxx often sells clothing that is "irregular." Separating the irregulars from the regulars is a ____ control.

postaction