mgmt 20/11
Implementing the control process includes which of the following steps?
All of these choices
The basic purpose of control is
All of these choices
According to the text, what are the two broad schemes by which controls can be classified?
Area and level
which of the following is NOT a characteristic of effective controls
accountability
one barrier to effective communication is the filtering of upward communication, which characteristic of effective control systems would this affect
accurarcy
Cody Kretsinger was charged with a computer breach at Sony Pictures Entertainment. User data was stolen. Hackers now threaten companies of all sizes and require constant security updates. This example illustrates how a control system can be used to
adapt to the environmental change.
after evaluation, an appropriate decision may be to
all the above
best way to integrate planning and control is to
all the above
budgets
all the above
A properly designed control system is important to an organization because it can be used to
anticipate, monitor, and respond to changing circumstances.
the term objective as it relates to controls means that the controls
are quantifiable
The purpose of control is to
assess organizational performance relative to some desired goal.
which of the following is NOT one of the areas on which strategic control should focus
audits
a ____ financial statement that lists all of the organization's assets and liabilities at the given point in time
balance sheet
where would you expect to find the following info: XYZ Corp has 746 million in assets and liabilities
balance sheet
which of the following is a type of financial budget that deals with forecasting the organizations assets and liabilities in the event all other budgets are met
balance sheet
which of the following statements does NOT describe a weakness associated with budgeting
budgets link planning and controlling
___ control is a form of organizational control characterized by formal and mechanistic structural arrangements
bureaucratic
if a manager has a directive leadership style and works in an organization in which performance expectations are minimal, which control structure is most appropriate
bureaucratic
a production manager argues that the increase in absenteeism is caused by decreased recruiting and placement standards, argument is supported by personnel documents, example of
checks and balances
The ____ at McDonald's fast-food restaurants is to fill each order within 90 seconds and to
control standard
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
a ____ debt ratio is a measure of the firms ability to meet its long-term financial obligations
debt
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 long term financial obligations
debt ratio
MTV has a ____ perspective toward international strategic control, it does not require its various divisions to report in frequently
decentralized
____ control is an approach to organizational control characterized by informal and organic structural arrangements
decentralized
company has a flat structure that allows workers in countries scattered around the globe to respond to unique local culture, situations, and needs, what control structure does this company use
decentralized
The last step in the control process is to
determine the need for corrective action.
which of the following is NOT one of the characteristics of an effective control system
developed and implemented by top management
Anu is comparing the performance of her small landscaping business against the standards established. when she has finished her comparisons, any of the following actions may be appropriate EXCEPT
eliminate the control if things went as planned
at the end of each fiscal year, managers report in their performance report if they are under budget, this is an example of a ____ control
finance
which of the following is an example of a financial control that allows managers to compare diff elements of a BS and IS to one another
financial ratios
Income statements, balance sheets, and audits are examples of the control of
financial resources.
Oshkosh Co. hired hundreds of workers to meet on order deadline, the employee training process has to adapt, which of the characteristics of an effective control system did the training system need
flexibility
which of the following is NOT a major form of operations control discussed in the text
functional
Standards used in organizational control are most like
goals.
The Sarbanes-Oxley Act, passed after the fall of Enron and Arthur Andersen, requires accounting firms to separate the auditing function from the consulting function. This example illustrates
how control helps organizations respond to changing standards.
overcontrol is most problematic in areas dealing with ___ resources
human
what is the problem with a university reward system that encourages faculty members to publish numerous research articles but fails to consider the quality of the articles
inappropriate focus
financial statement that presents a picture of organization's financial performance over a period of time as opposed to a single point in time
income statement
the ___ shows an organization's bottom line an summarizes activities over a period of time
income statement
you are looking at a document that has entries for such items as revenues, expenses, and profit, looking at a
income statement
User data was stolen. Hackers now threaten companies of all sizes and require constant security updates. This is an example of the need for ____ control.
information
managers can improve the effectiveness of the control system by
integrating control with planning
when Boeing brought the aviation parts and services company Aviall, it stated that it expected to have no initial change in earnings and the following year a modest gain, it was
integrating planning with control
participation in a control system
is a technique for overcoming resistance to controls
Deirdre is a freelance editor, she knows how many chapters she need s to edit and approx how long each chapter takes, she is calculating what she needs to do to meet her next deadline, she is making a ____ budget
labor
___ ratios assess the ease with which the assets of organization can be converted into cash
liquidity
which of the following statements is TRUE concerning what happens to control as the level of uncertainty increases
measurements need to be taken more frequently
a plant manager is told that she has 8,000 labor hours to allocate in a week, example of ___ budget
nonmonetary
the ___ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used
nonmonetary
on the end of year report the division manager noted that "gross margin for the product was lower than expected" statement indicates that the control system used might lack
objectivity
what characteristic of effective control systems is lacking when a control system reports production output as being better than average, satisfactory, marginal, or unsatisfactory
objectivity
___ ratios indicate the effectiveness of specific functional areas rather than that of the total organization
operating
if Suzlon Energy wants to focus on the strength of its wind-turbine division, it will use ___ ratios
operating
Google partnered with Nielsen Co. to poll users about ads on Google+. Nielsen then packaged the information for advertisers. This was a response to advertiser complaints about the effectiveness of ads on the social network. This indicates that Google is placing an emphasis on ____ controls.
operations
McDonald's fast food restaurants aim to fill each other within 90 seconds and to have no customer wait longer than 3.5 minutes. This is derived from the company's
organizational
To the extent possible, standards used for control purposes should be derived from
organizational goals.
requires employees to use a key that keeps track of how many copies they make on copy machines, some employees resent the lack of trust, example of
overcontrol
some managers at JP Morgan viewed the CEO monitoring all of their expenses as too much involvement, saw it as
overcontrol
at the beginning of the planning-controlling process, planning
plays a major role in shaping the control process
amazon asks customers to rate their experience with the product and service, this is an example of ___ control
postaction
once a year Boy Scout troops submit financial reports describing income and expenditures, this is an example of a ____ control
postaction
politicians transform info from many sources into decisions about policies for the are they govern, when politicians follow poll results after the passage of legislation, they are using ___ control
postaction
the % of graduates who find a job with in 65 months of graduation is a ____ control for colleges and universities
postaction
Thousands of people audition each year to be contestants on American Idol, audition is an example of a ____ control
preliminary
a college admissions board required students to have certain GPAs and SAT score to be accepted at the school
preliminary
eBay partnered with Nielsen to poll users about ads on eBay. Nielsen then packed the info for advertisers, this was a response to advertiser complaints about the effectiveness of ads on the Internet. Verifying ad effectiveness of other companies before buying ad space on eBay is a ____ control for the businesses
preliminary
everyone working or volunteering for Girl Scouts has a background check before they work with girls or handle money, what kind of operations control is this
preliminary
politician transform info from many sources into decisions about policies for the area they govern, when politicians "float an idea" by having a staff member leak it to the press to gauge reactions, the politican's staff is using ____ control
preliminary
postaction control is most appropriate when the
product being produced is simple and routine
which of the following is NOT a type of operating budget
production
which of the following is NOT a type of financial budget
profit
what is the MOST important factor in effectively integrating the planning and control functions
provide for controls as plans are developed
which of the following is NOT characteristic of bureaucratic approach to organizational control
reliance on group norms
brokerage firms on Wall Street are now closely monitoring research analyst's emails, if analysts view this as inappropriate, the control system will be characterized as
resistance to control
to what part of a system are preliminary controls applied
resources
U 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, example of ___ budget
revenue
which of the following would NOT be included in the typical balance sheet
revenues
which of the following is NOT characteristic of decentralized control
rewards focused on individual performance
as the product being produced becomes more complex, which of the following types of operations controls would logically become more important
screening
during episodes of the Biggest Loser, contestants compete to lose weight and stay at the rank, bc someone leaves each week, this is an example of a ____ control
screening
politicians transform info from many sources into decisions about policies for the area they govern, when politicians follow poll results during legislative debate, the politicians are using ___ control
screening
FedEx focuses on top line--quality and customer satisfaction. UPS focuses on bottom line--efficiency and cost, they have difference in ____ control
strategic
Greeting Card Co. reported that "its sales have been hurt by ppl increasingly using the Internet to communicate" as a result it decided to lay off 13% of its full-time workers, this need for cost cutting measures is ___ control system
strategic
The credit crisis and the Federal Reserve's response to it faced criticism from Congress. The Treasury Department requested a review of the central bank's structure and governance. There is now broad support for auditing the Fed using the Government Accountability Office. The change in the economic and political environment of the Fed means the Fed needs to adapt its ____ control.
strategic
the level of control designed to ensure that the organization meets its goals is ____ control
strategic
Secretary of Defense, Gates, shifted the pentagon's budget from expensive, high tech weapon systems to timely, responsive systems. Small defense contractors were more responsive to the change and won more contracts. In this case ____ control helped the small companies.
structural
screening controls
take place during the transformation process
Apple iPhones are notorious for cracked screens, when a customer brings one in to an iStore, the employee checks the customer records and may replace the screen for free, which step in control process does this represent?
taking corrective action
Organizational control is
the regulation of organizational activities to facilitate goal attainment.
Merill Lynch monitored a research analyst's emails, discovered illegal info sent to a client, and fired the analyst, Merrill Lynch's ____ helped reduce resistance to control
verification procedures
some investment firms require traders to take two consecutive weeks of vaca, so the traders books can be reviewed, example of
verification procedures
army helicopter pilots follow a preflight checklist because small things here and there can add up to disaster in the air later. This illustrates
why control is necessary to reduce the accumulation of errors
