M14: Managing Control

GE is highly leveraged. Financial analysts look at its ____ ratio to determine if it can make interest payments.

coverage

A reward system directed at group performance would happen in bureaucratic control.

false

An after-action report is a screening control.

false

Carlos's division planned to design a more effective advertising campaign, but did not decide how effectiveness would be measured. This is correct, because if controls are to be effective they should be added later.

false

Every month, Beau balances his checkbook register. For the last six months, he has found a $25 unexplained difference between his calculation and the bank's calculation. Now his checkbook is $150 out of balance. Beau's control system fulfills its function of limiting the accumulation of error.

false

For a budget to be effective it needs to be strictly enforced

false

Marketing is part of financial control.

false

Physical control is concerned with the processes the organization uses to transform resources into products or services.

false

Reporters who verify stories with additional sources are using postaction control

false

Structural control can focus on any of the areas involved in implementation of organizational strategy.

false

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

functional

Which of the following are important elements of decentralized control?

group norms and employee responsibility

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

income statement

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

information resources

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

international

A plant manager is told that she has 15 workers, for 6 hours a day, five days a week. This is part of a(n) ____ budget.

labor

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

Apple iPhones are notorious for cracked screens. When a customer brings one in to an iStore, the employee checks the customer records and may replaces the screen for free. Which step in the control process does this represent?

taking corrective action

The control process focuses on these four types of organizational resources: physical, human, information, and financial.

true

Some investment firms require traders to take two consecutive weeks of vacation, so the traders books can be reviewed. This is an example of

verification procedures