Chapter 14 SmartBook

Select all that apply A production budget should include which of the following? (Choose every correct answer.)

- Available resources - Types and capacities of machines - Economic quantities to produce

Select all that apply What does the first step of the budgetary control process involve? (Choose every correct answer.)

- Budget approval and publication - Estimating sales - The broad plan for the company

Select all that apply Which of the following are types of control systems? (Choose every correct answer.)

- Bureaucratic - Clan - Market

Select all that apply Which of the following are examples of open communication? (Choose every correct answer.)

- Employees report deviation in production. - Employees are willing to share bad news.

Select all that apply Which of the following situations would be more likely to happen in a control system with open communication? (Choose every correct answer.)

- Employees tell management when personal problems cause them to perform poorly at work. - Employees report faulty systems that are causing a drop in production.

Select all that apply Which of the following are steps in the budgetary control process? (Choose every correct answer.)

- Establish expectancies - Take action - Perform budgetary operations

Select all that apply Which of the following are approaches to bureaucratic control? (Choose every correct answer.)

- Feedforward control - Feedback control - Concurrent control

Select all that apply Which three measures are included in a company's triple bottom line? (Choose every correct answer.)

- Impact on employees and local communities - Financial performance - Environmental impact

Select all that apply How does budgetary control compare to other methods of managerial control? (Choose every correct answer.)

- It is widely recognized. - It is commonly used.

Select all that apply Which two goals should an effective control system accomplish?

- Minimizing dysfunctional behaviors - Producing the most possible benefits

Select all that apply Which tools are often used to measure performance levels inside an organization? (Choose every correct answer.)

- Oral reports - Personal observations - Written reports

Select all that apply In which two ways do market controls affect pricing?

- Price indicates how valuable the service or good is. - Price helps to regulate productivity and performance.

Select all that apply Which of the following characteristics describe an effective control system? (Choose every correct answer.)

- Standards should be objective. - The system should encompass all elements that affect performance significantly. - It should be hard to sabotage or falsify the data being monitored.

Select all that apply Which of the following are steps in the control process? (Choose every correct answer.)

- Taking action to correct problems - Setting performance standards - Measuring performance - Comparing performance to the standard

Select all that apply When are control systems less objectionable to employees? (Choose every correct answer.)

- When they feature standards that are possible to achieve - When they feature useful standards of performance - When they do not control too much

Select all that apply Which of the following are characteristic of the most effective control systems? (Choose every correct answer.)

- Workers are given a critique of their performance on the job. - Workers recognize their own shortcomings and correct them without supervision. - Managers tell workers why the control system is important.

_____ costing helps an organization recognize streams of activity and assign costs according to the time spent on particular activities.

Activity-based

_____ allocates costs across business processes.

Activity-based costing

During which stage of the process of transforming inputs into finished goods and services is feedforward control used?

Before operations begin

______ control establishes relationships among feedforward control, concurrent control, and feedback control.

Budgetary

When activities are not proceeding as planned, what management tool will identify and correct significant variations?

Bureaucratic control system

What type of control is based on mutual respect and individual responsibility?

Clan

Select all that apply Which two of the following control systems tend to be the most flexible?

Clan Market

After setting performance standards and measuring performance, what is the third step of the control cycle?

Comparing performance with the standard

____ control includes directing, monitoring, and fine-tuning activities as they are performed.

Concurent

____ is any process that directs the activities of individuals toward the achievement of organizational goals.

Control

Which management function ensures that organizational activities are going as planned?

Controlling

After managers monitor the workforce, they discuss their observations with each employee and help that individual improve performance. What is this type of control called?

Feedback

Which type of control gives managers information about results to correct problems after they arise?

Feedback

_____ control takes place before operations begin and allows managers to ensure that planned activities are carried out properly.

Feedforward

What is the purpose of a profit and loss statement?

Having a detailed breakup of the expenses and revenues

What type of audits have developed as a means of evaluating the effectiveness and efficiency of various systems within an organization?

Management

Which of the following is a type of control that relies on economic forces?

Market

_____ affect performance via economic forces and pricing mechanisms.

Market controls

What is the second step in the control process?

Measuring performance

______ occurs when control systems prompt employees to follow the rules to an extreme that stifles creativity.

Rigid bureaucratic control

What type of budget includes data forecasting sales by month, sales area, and product?

Sales

What is the first step of a control system?

Set performance standards

Which of the following is the first major step in the control process?

Setting performance standards

Which step in the control process measures performance?

Step 2

Which control system includes performance standards regarding finances, customers, business processes, and learning?

The balanced scorecard

When is concurrent control used?

While plans are being carried out

The most useful control systems are based on ______ performance standards.

accurate

A balance sheet shows the financial health of a company at a specific time and reports ______.

assets, liabilities, and stockholder's equity

The ______ summarizes the financial condition of a company at a specific time.

balance sheet

Two statements that summarize a company's financial condition are the profit and loss statement and ______.

balance sheet

A(n) ______ control system detects and corrects significant variations, or discrepancies, in the results of planned activities.

bureaucratic

A(n) _______ control system uses rules, standards, and regulations to guide performance.

bureaucratic

Although formal _____ control systems are the most pervasive and most widely taught, they are not always the most efficient or flexible.

bureaucratic

____ control involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

clan

With the six sigma control process, the goal is zero ______.

defects

Allowing employees to initiate their own corrective action Blank______.

encourages self-control and reduces the need for outside supervision

The concept of a triple bottom line allows companies to determine how ______ their business is.

environmentally sustainable

The balanced scorecard includes elements of feedforward, concurrent, and ______ control.

feedback

When managers tell employees what they are doing wrong and help them improve their performance, they are using _____ control.

feedback

Feedback control is used at the ______ stage of the process of transforming inputs into finished goods and services.

final

Feedforward control is ______ oriented.

future

Managers conduct ______ audits to measure the effectiveness and efficiency of multiple systems within organizations.

internal and external

Placing too much emphasis on short-term income and profits instead of pursuing a longer-term strategy is known as ______.

management myopia

A(n) ______ control system uses prices, competition, and exchange relationships to regulate activities as though they were economic transactions.

market

Large, diversified firms use ______ controls to regulate independent business units.

market

When business units make their own decisions and have their own power, managers can use ______ to ensure that performance meets the corporation's goals.

market controls

Effective control systems __________.

maximize benefits and minimize dysfunction

In the third step of the control process, managers evaluate actual ____.

performance

Market controls affect price, which, in turn, affects productivity and ______.

performance

Feedforward control is sometimes referred to as ______ control.

preliminary

A ______ budget is typically stated in physical units.

production

An itemized financial statement of income and expenses is a(n) ______.

profit and loss statement

The balance sheet and the ______ are financial statements that help control overall organizational performance.

profit and loss statement

No matter how it is measured, performance data must be ______ to be of value to the organization.

reported promptly

If managers use too much ______ control, they can discourage employee innovation.

rigid

Luvo is setting a ______ budget by reviewing forecasts of sales by month, sales area, and product.

sales

Step 1 of a typical control system involves ______ performance standards.

setting

Fixating on ______ and profits while neglecting long-term strategy is known as management myopia.

short-term earnings

In the last step of the control process, managers take steps to correct ______.

significant deviations from the standard

In order to gain employee acceptance, ______.

standards should be achievable and supported by an emphasis on positive behavior

The last step of the control process is to ______.

take action that will correct significant deviations

To be of value, the reporting of performance standards must be ______.

timely

Performance data is commonly obtained from both ______ reports, in addition to personal observation.

written and oral

When organizations use the six sigma process, they are striving for a ______ environment.

zero-defect