MAN3025 Chapter 16

Which of the following statements about the supply chain are true?

It is a significant cost for companies. It is an important component of business and can impact company finances.

Which of the following is an example of a physical area of control?

Monitoring the use of the conference room

What is defined as the subcontracting of services and operations to an outside vendor?

Outsourcing

Which of the following are common barriers to a successful control system?

Overemphasis on paperwork Too much control Too little employee participation in planning

A successful control system is which of the following?

Realistic and positive

Which of the following are characteristics of a successful control system?

Realistic, positive and understandable Strategic and results oriented Timely, accurate, and objective

Who is generally responsible for an internal audit of the organization's financial accounts and statements?

The firm's own professional staff

What are key inhibitors to implementing TQM successfully?

The inability to develop a culture of quality The failure to provide evidence supporting previous improvement activities

Historically, what are three budget-planning approaches that managers have used?

The planning programming budgeting system Zero base budgeting Incremental budgeting

Which of the following are reasons why control is needed in an organization?

To discover errors and irregularities To detect opportunities To adapt to change and uncertainty To reduce costs and increase productivity

Which level of management is typically responsible for strategic control?

Top managers

Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction?

Total quality management

Overemphasis on one instead of multiple approaches, too much control, and too little employee participation are a few of the barriers to ______.

a successful control

A(n) ______ budget is where resources are allocated on a single estimate of costs, also known as a static budget, and that budget amount cannot be adjusted over time.

fixed

The traditional form of budgeting that is currently the most commonly used approach is ______ budgeting.

incremental

Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the budgeting approach known as ______ budgeting.

incremental

How can benchmarking be used to help increase productivity?

- By comparing a business in one industry against a world-class performer in another - By comparing your performance against that of colleagues - By comparing a company against its rivals

Which of the following statements are true concerning the management of individual productivity?

- Organizations contribute to individual productivity through the work environment they create. - Individuals contribute to their productivity by applying their energy and motivation to work daily. - Managers contribute to individual productivity through their behavior.

Match the step in the control process with its description.

- The desired performance level for a given goal is established. - Actual performance is measured. - Measured performance is compared to established standards. - Corrective action is taken, if necessary.

Which of the following is a formal verification of an organization's financial and operational systems?

An audit

What is the term for the set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action?

Best practices

Who would be responsible for an external audit of a firm's financial accounts and statements?

Certified public accountants

Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful?

Deming management

A web retailer has received several negative social media reviews over the past few weeks due to missed shipments of product. Which reason for why control is needed does this best demonstrate?

Discover irregularities and errors

What increases productivity by using information systems to integrate virtually all aspects of a business?

Enterprise resource planning software systems

What type of systems are information systems used to integrate virtually all aspects of a business?

Enterprise resource planning software systems

Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control?

Feedback

Feedback

Focuses on collecting performance information after a task or project is complete

Concurrent

Focuses on collecting performance information in real time

Feedforward

Focuses on preventing future problems

Which type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point?

Incremental

What are the indicators that make up the balanced scorecard?

Internal processes Financial measures Customer satisfaction Innovation and improvement activities

Fran and her friends are discussing their work situations. Which of them is in the best situation for increasing her individual productivity?

Irina works for a company that reimburses employees for work-related education courses.

Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this represent?

Variable

The ______ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures.

balanced scorecard

A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms.

budget

As a property manager for a large office complex, Alisha develops a projection of the costs that will be incurred over the next 12 months, such as landscape expenses, snow removal, insurance, and repairs. Alisha has prepared a(n) ______.

budget

A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______.

cannot be adjusted over time

The focus of total quality management (TQM) is ______, training, and customer satisfaction.

continuous quality improvement

The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met.

controlling

Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed?

controlling

A(n) ______ in business management is a display of information, such as sales, orders, and costs, in easy-to-read graphics.

dashboard

Like an instrument panel in a vehicle, a(n) ______ is a managerial report that displays easy-to-read graphics on critical information, such as sales, orders, costs, and shipments.

dashboard

Place the four steps of the control process in their typical order, from first (at the top) to last (at the bottom).

establish standards, measure performance, compare performance to standards, take correction action if necessary

The two types of audits are ______.

external and internal

A(n) ______ is a formal verification of an organization's financial accounts and statements made by outside experts who are certified public accountants (CPAs).

external audit

Verification of a firm's financial accounts and statements by the organization's own professional staff is a(n) ______.

internal audit

Deming management proposed ideas for making organizations more responsive, more democratic, and ______.

less wasteful

Halimax has recently been hired by numerous city governments to handle security at major sporting events. The hiring of Halimax rather than relying on the city police force is an example of ______.

outsourcing

Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______.

perception

An office park installs security cameras in the parking lot to better ensure the safety of tenants and visitors. This is an example of the ______ area of control.

physical

The level of control in which top managers monitor performance to ensure that plans are being implemented and take necessary corrective action is known as ______ control.

strategic

A _______ map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization.

strategy

A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______.

strategy map

The sequence of suppliers that contribute to creating and delivering a product is known as the ______.

supply chain

True or false: In the service industry, customer satisfaction is often based on perception.

true

True or false: One roadblock that can keep TQM from delivering its intended benefits is the failure to develop a culture of continuous learning.

true

A budget in which the allocation of resources fluctuates in proportion to different levels of activity during the budget period is known as a(n) ______ budget.

variable