MGMT 300 Chapter 19

All of the following are major perspectives of the Balanced Scorecard EXCEPT _____. a. competitors b. customers c. learning and growth d. financial e. internal business processes

a

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? a. Expense budget b. Revenue budget c. Cash budget d. Capital budget e. Nonfinancial budget

a

A contingency factor that can influence the success of a TQM program in a negative way is that: a. continuous improvement is a way of life. b. TQM serves to enrich jobs and motivate employees. c. problem-solving skills are improved for all employees. d. participation and teamwork are used to tackle significant problems. e. union leaders are left out of QC discussions.

e

The firm's financial position with respect to assets and liabilities at a specific point in time is shown by its: a. activity ratio. b. profitability ratio. c. income statement. d. liquidity ratio. e. balance sheet.

e

Contingency factors that can influence the success of a TQM program in a negative way include all of the following EXCEPT: a. tasks make high skill demands on employees. b. management expectations are unrealistically high. c. middle managers are dissatisfied about loss of authority. d. workers are dissatisfied with other aspects of organizational life. e. managers wait for big, dramatic innovations.

a

For control, this type of measure is an important part of achieving higher performance. a. Statistical b. Theoritical c. Emotional d. Employee conflict e. Market

a

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. a. organizational b. feedback c. budgetary d. systems e. quality

a

Quality circles are based on the assumption(s) that: a. the people who do the job know it better than anyone else. b. quality can be increased by increasing the size of the organization. c. quality can be increased by talking more about it. d. the more employees talk, the more satisfied they will be. e. all of these.

a

The _____ plans future investments in major assets to be depreciated over several years. a. capital budget b. balance sheet budget c. cash budget d. revenue budget e. profit budget

a

The conversion ratio is considered to be a(n) _____ ratio. a. activity b. liquidity c. profitability d. leverage e. cash

a

Which financial control system measures the stock market's estimate of the value of a company's past and projected capital investment projects? a. Market value-added b. Economic value-added c. System governance d. Activity-based costing e. Corporate governance

a

Which of the following allows employees to see for themselves the financial condition of the company? a. Open-book management b. An economic value-added system c. Activity-based costing d. An inappropriate control system e. Market value-added system

a

Which of the following is considered a leverage ratio? a. Debt ratio b. Return on total assets c. Profit margin on sales d. Conversion ratio e. Inventory turnover

a

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? a. Measuring actual performance b. The planning and setting of performance standards c. SWOT analysis d. The ability to take corrective action when necessary e. All of these

a

____ standards represent an international standard for quality management. a. ISO 9000 b. Six Sigma c. TQM d. Kiazan e. Foreign Economy Index

a

A quality circle is a group of _____ volunteer employees. a. 2 to 4 b. 6 to 12 c. 10 to 20 d. 15 to 25 e. 30 to 50

b

An advantage of the bottom-up budgeting process is: a. its emphasis on bureaucratic control. b. lower managers are more involved. c. top managers control the information flow. d. top managers are often not committed to achieving budget targets. e. all of these.

b

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? a. Matrix control b. Hierarchical control c. Decentralized control d. Bottom-up control e. Balanced control

b

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: a. concurrent control. b. feedback control. c. feedforward control. d. preliminary control. e. preventive control.

b

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. a safety group. b. a quality circle. c. an ad-hoc committee. d. a problem team. e. none of these.

b

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: a. benchmarking. b. continuous improvement. c. unity of direction. d. top-down control. e. none of these.

b

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. a. cash b. capital c. revenue d. operating e. expense

b

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): a. current ratio. b. inventory turnover ratio. c. conversion ratio. d. profitability ratio. e. leverage ratio.

b

The _____ ratio refers to the ability of the organization to meet its current debt obligation. a. activity b. liquidity c. profitability d. conversion e. growth

b

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: a. bureaucratic control. b. decentralized control. c. organizational control. d. feedback control. e. none of these.

b

Use of the balanced scorecard can hinder or decrease organizational performance if it is implemented using which type of orientation? a. Performance management orientation b. Performance measurement orientation c. Customer orientation d. Learning and growth orientation e. Internal business process orientation

b

What is the first step in the feedback control system? a. Establishing strategic objectives b. Establishing standards of performance c. Taking corrective action d. Comparing performance to standard e. Measuring previous performance

b

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? a. Open-book management b. Economic value-added system c. Activity-based costing d. Inappropriate control system e. None of these

b

Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs? a. Engineering b. Total quality management c. Outsourcing d. Culture e. Diversity

b

Which of the following is a ratio that measures the firm's internal performance with respect to key activities defined by management? a. A liquidity ratio b. An activity ratio c. Return on total assets d. A current ratio e. Profit margin on sales

b

Which of the following is the systematic process through which managers regulate organizational activities? a. Strategic planning b. Organizational control c. Organizational goal setting d. Strategic regulation e. Organizational leading

b

Which of the following refers to funding activities with borrowed money? a. ROA b. Leverage c. Liquidity d. Profitability e. Activity

b

Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected? a. Quality circle b. Corporate governance c. ISO certification d. Open-book management e. Balance scorecard

b

Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC? a. Quality circles b. Six Sigma c. Benchmarking d. Balanced scorecard e. Continuous improvement

b

____ refers to the steps taken to complete a company process. a. Continuous improvement b. Cycle time c. Quality circles d. Six sigma e. Benchmarking

b

_____ indicators focus on production and operating statistics. a. Financial performance b. Business process c. Critical success d. Potential for learning and growth e. Performance measurement

b

_____ is any organizational department or unit under the supervision of a single person who is responsible for its activity. a. Independent center b. Responsibility center c. Analysis center d. Control center e. Budgeting center

b

_____ provide the basic information used for financial control of an organization. a. Owners equity b. Income statements c. Financial position d. Mission Statements e. 100-K's

b

A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a _____. a. feedforward control group b. work team c. quality circle d. committee e. problem team

c

According to the control model, after establishing standards of performance the manager should: a. compare performance to standards. b. get the standards approved by the supervisors and subordinates. c. measure actual performance. d. take corrective action. e. provide feedback.

c

All of the following are key steps of setting up feedback control systems EXCEPT: a. comparing performance to standards. b. establishing standards. c. getting employee opinions. d. measuring performance. e. making necessary corrections.

c

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? a. Centralized control b. Hierarchical control c. Decentralized control d. Top-down control e. Balanced control

c

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: a. strategic budgeting. b. operational budgeting. c. top-down budgeting. d. management by objectives. e. bottom-up budgeting.

c

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? a. Taking corrective action when necessary b. An information system c. Establishing performance standards d. Engaging strategic analysis e. None of these

c

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: a. comparing performance to standards. b. developing adequate measures of performance. c. taking corrective action. d. all of these. e. comparing performance to standards and developing adequate measures of performance only.

c

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? a. Its performance standards b. Its management information systems c. Its ability to take corrective action when necessary d. Its measurement systems e. None of these

c

The _____ is purchase orders divided by customer inquiries. a. current ratio b. inventory turnover ratio c. conversion ratio d. profit margin on sales e. none of these

c

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: a. clan control. b. bottom-up control. c. hierarchical control. d. culture control. e. decentralized control.

c

To reduce the organization's cycle time is to reduce the number of: a. of committees in the organization. b. layers of management. c. steps in an organizational process. d. staff employees in the organization. e. none of these.

c

Total quality management: a. is based on the ideas of Frederick Taylor. b. gives managers total responsibility for achieving quality goals. c. gives all employees the responsibility for achieving quality goals. d. was first successfully implemented in the United States. e. is all of these.

c

What is the key to successful benchmarking? a. Application b. Implementation c. Analysis d. Strategy e. Planning

c

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? a. Capital expenditure budget b. Balance sheet budget c. Cash budget d. Revenue budget e. Profit budget

c

Which of these is based on a set of international standards for quality? a. Quality circle b. Corporate governance c. ISO certification d. Open-book management e. Balance scorecard

c

_____ control is the process of setting targets for an organizations expenditures. a. Quality b. Income c. Budgetary d. Systems e. Supply chain

c

_____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities. a. Open-book management b. An economic value-added system c. Activity-based costing d. An inappropriate control system e. None of these

c

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? a. Balanced scorecard b. Six Sigma c. Continuous improvement d. Total quality management e. Open-book management

d

Focusing on how well resources and human capital are being managed for the company's future refers to which component of the balanced scorecard? a. Customers b. Learning and growth c. Financials d. Internal business processes e. External business processes

d

Net income divided by sales is the correct formula for calculating: a. return on total assets. b. a current ratio. c. a liquidity ratio. d. profit margin on sales. e. a corporate evaluation.

d

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? a. Income statement b. Activity ratio c. TQM report d. Balance sheet e. Balance scorecard

d

The goal of _____ is to get every employee thinking and acting like a business owner. a. management-by-walking around b. closed-book management c. MBO d. open-book management e. just-in-time inventory systems

d

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? a. She should order more training for her workforce. b. She should contact the maintenance department and have them come fix her machinery. c. She should suspend the poorer workers in her department. d. She should investigate and discover the cause of the problem. e. None of these

d

Which of the following includes anticipated and actual expenses for a responsibility center? a. Revenue budget b. Cash budget c. Capital budget d. Expense budget e. Operating budget

d

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? a. Economic value-added system b. Activity-based costing system c. Market value-added system d. Balanced scorecard e. Open-book management system

d

Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs? a. Continuous improvement b. Cycle time c. Quality circles d. Six Sigma e. Benchmarking

d

Which of the following is the process of measuring your organizational process against the best in the industry? a. Outsourcing b. Continuous improvement c. Environmental analysis d. Benchmarking e. Competitive measurement

d

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? a. Set new absenteeism standards. b. Develop new measures of absenteeism. c. Terminate three employees for excessive absenteeism. d. All of these would be good examples of taking corrective action. e. None of these

d

____ is(are) most beneficial when employees have challenging jobs. a. Six Sigma b. Total Quality Management c. Kaizen d. Quality circles e. Continuous improvement

d

_____ refer(s) to the difference between assets and liabilities and is the company's net worth in stock and retained earnings. a. Assets b. Current debt c. Net profit d. Owners' equity e. Liabilities

d

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: a. top-down budgeting. b. strategic budgeting. c. revenue budgeting. d. bottom-up budgeting. e. none of these.

d.

According to MANAGER'S SHOPTALK in Chapter 19, the interest in self-awareness is part of a growing discipline called _____. a. employee self promotion b. emotional development c. self-leadership d. emotional hueristics e. auto-analytics

e

All well-designed control systems involve the use of _____ to determine whether performance meets established standards. a. opinions b. advice c. consultants d. benchmarks e. feedback

e

Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT: a. tasks make high skill demands on employees. b. TQM serves to enrich jobs and motivate employees. c. problem-solving skills are improved for all employees. d. participation and teamwork are used to tackle significant problems. e. managers wait for big, dramatic innovations.

e

Decentralized control is usually implemented in all of the following areas EXCEPT: a. self-control. b. peer group. c. corporate culture. d. employee selection and socialization. e. the quality control department.

e

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? a. Customers b. Learning and growth c. Financials d. External business processes e. Internal business processes

e

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? a. Balanced scorecard b. Six Sigma c. Continuous improvement d. Total quality management e. Open-book management

e