Management Final

Bhavik has established a timetable for comparing performance to standards. What should he keep in mind when he sets the timetable? a. how to change the performance standard b. complexity of the work c. how to compare performance to the standard d. how to measure performance e. cost of quality compared to standards

complexity of the work

Many large organizations use ____ to help line managers with activities and coordinate overall systems by gathering and assimilating relevant information. a. supervisors b. inspectors c. controllers d. vice presidents e. quality testers

controllers

During the 1970s in the United States, manufacturing entered a long period of decline. Which of the following is the primary reason for this decline? a. modernization of plants b. rise in unemployment c. growth in the service sector d. foreign competition e. recession

foreign competition

Which of the following is indicated by total factor productivity? a. how well an organization uses all of its resources b. the level of productivity achieved by an individual company c. the total productivity achieved by all the firms in a particular industry d. the total level of productivity achieved by a country e. the total commitment to quality in all forms by an organization

how well an organization uses all of its resources

Which of the following is a characteristic of effective control? a. It provides timely information. b. It is separate from planning. c. It is rigid. d. It is subjective. e. It directly controls employee behavior.

it provides timely information

How does productivity affect the standard of living for a country when goods are exported? a. Money from the exports is brought back to the country. b. Citizens will have fewer goods and services. c. Prices will be higher in the home country than the country where the exports are sent. d. Citizens will have fewer goods, but improved services. e. The global economy is enhanced

money from the exports is brought back to the country

A(n) ____ budget is simply a budget expressed in terms such as units of output, hours of direct labor, machine hours, or square-foot allocations. a. nonmonetary b. financial c. operating. d. liquidity e. coverage

nonmonetary

If an energy company wants to discover the effectiveness of its wind-turbine division in a particular state, it will use a(n) ____. a. liquidity ratio b. balance sheet ratio c. return on investment d. operating ratio e. debt ratio

operating ratio

Serviceability is the dimension of quality that refers to ____. a. how a product looks, feels, tastes, and smells b. the degree to which a product's design and operating characteristics meet established standards c. a probability of not malfunctioning during a specified period d. a measure of product life e. the speed and ease of repair

the speed and ease of repair

A factory produces 100,000 units of its product with 10 hours of direct labor. Which of the following accurately represents the factory's labor productivity index? a. 1,000 b. 10 c. 10,000 d. 100 e. 1,000,000

10,000

An insurance company insures athletes who have multimillion-dollar contracts and pays them a sum of money when they are injured or unable to play. Athletes buy the insurance policies as a way to protect themselves. The insurance company's decision to specialize in this type of insurance addresses their decision regarding ____. a. product-service mix b. capacity c. layout d. location e. human resource

Product service mix

Which of the following control systems is most likely to be highly effective? a. A control system that provides information as often as is necessary. b. A control system that is rigid. c. A control system that is loosely linked with planning. d. A control system that provides subjective information. e. A control system that focuses only on quantifiable variables.

a control system that provides information as often as is necesary

Managers at Sparky's Auto Parts decided to broaden their product line beyond spark plugs. They decided what level of sales they wanted for each product for each of the next five years. How has Sparky's linked their control system? a. by integrating it with planning b. by incorporating flexibility c. by using accurate measures d. by using subjective goals e. by linking it with employee incentives

by integrating it with planning

Yui runs a manufacturing facility that produces seat belts for the automotive industry. She finds that she occasionally has too much of some parts, and not enough of others, and is considering implementing a just-in-time inventory management system. What would be an advantage of Yui adopting a JIT inventory management method? a. Costs tied up in raw material inventory would be transferred backwards in the supply chain. b. Shortages of work-in-process inventories would be eliminated. c. Work in progress inventory would be low, while finished goods inventory would be high. d. Product distribution processes would be streamlined. e. High-level production scheduling systems would no longer be necessary

costs tied up in raw material inventory would be transferred backwards in the supply chain

The first step in the control process is ____. a. modifying control standards b. comparing performance against standards c. measuring performance d. establishing control standards e. determining the need for corrective action

establishing control standards

Which of the following is true of the return ratio? a. It indicates how easily an organization's assets are converted into cash. b. It reflects an organization's ability to meet long-term financial obligations. c. It shows managers and investors the earnings an organization is generating relative to its assets. d. It helps estimate an organization's ability to cover interest expenses on borrowed capital. e. It indicates the effectiveness of specific functional areas in an organization.

it shows managers and investors the earnings an organization is generating relative to its assets

Eagle Inc. surveyed users so see if its latest products lived up to expectations and if the users encountered any problems when using the product. At the same time, Eagle tracked how many products were rejected by inspectors when they came off the assembly line as well as how many products were returned because of defects. This scenario illustrates an aspect of ____ controls. a. operations b. development c. strategic d. financial e. structural

operations

Azures Airlines operates international flights and offers all business-class services. The customers feel that the prices of Azures' flights are similar to other airlines, but seats are more comfortable and service is better. This quality of Azures is an example of ____. a. features b. aesthetics c. reliability d. perceived quality e. serviceability

perceived quality

Hermes is a taxi service that asks customers to fill out an online feedback form once their ride is complete. Hermes is making use of ____ operations control. a. preliminary b. screening c. structural d. postaction e. decentralized

postaction

Intertek's product quality inspections on finished goods indicates the defect rate. If the rate exceeds a certain level, the production manager is alerted and a process is implemented to identify and eliminate the causes. This is an example of ____ control. a. preliminary b. postaction c. screening d. financial e. structural

postaction

In a toy manufacturing factory, the employees are stationed along the assembly line. As a toy moves along the assembly line, each employee stationed in their position, adds a particular part to the toy. The toy factory has a ____ layout. a. process b. cellular c. fixed-point d. product e. distributed

product

Rather than relying on hundreds of suppliers, RDC Corp. has recently reduced its number of suppliers and negotiated several special production delivery arrangements. This reflects changes in RDC's ____. a. inventory management b. purchasing management c. finished goods control d. facilities management e. automation

purchasing management

Before submitting a final policy memo, analysts may modify certain recommendations based on feedback from experts and the general public. This is an example of ____ control. a. preliminary b. postaction c. screening d. financial e. structural

screening

A convenience store at the gas station provides utility for customers because it makes it easy for them to purchase a few essentials when they stop for gasoline. The convenience store belongs to the ____ industry. a. service b. manufacturing c. automotive d. importing e. electronics

service

Which of the following directly led to the big move to automate factories after World War II. a. collapse of the coal industry b. the need to control accounting functions c. shortage of skilled workers d. increases in manufacturing efficiencies e. surplus capital

shortage of skilled workers

Rabeya developed a line of gluten- and dairy-free power bars that is gaining the attention of healthminded consumers. Brand awareness is growing rapidly. Future sales growth will depend on rapid expansion into new locations and through new types of sales channels. The extent to which Rabeya is able to meet these expansion goals should be regulated through which control measures? a. operations b. financial c. structural d. strategic e. bureaucratic

strategic

Which of the following is a potential disadvantage of using a budget? a. Organizational performance is measured against the budget. b. Budgets eliminate effective control measures because all controls have dollar values. c. They do not work well with the planning process. d. The budget can be applied too rigidly. e. Budgets are time consuming to create and monitor.

the budget can be applied too rigidly

Why should an organization carefully consider the use of a CIM system before buying one? a. They must be linked with computer-integrated manufacturing systems. b. They must create new prototypes before use. c. They can increase the breakeven point for firms. d. They only work well at low levels of production. e. They will have to lay off more of their production staff

they can increase the breakeven point for firms

Why are financial budgets considered to be critically important to an organization? a. They indicate where resources will be coming from and how they will be used. b. They help managers coordinate projects. c. They help define the established standards for control all managers must use. d. They enable the organization to evaluate the performance of managers and organizational units. e. They indicate the true cost of goods sold.

they indicate where resources will be coming from and how they will be used

Even though internal audits are more expensive than external audits, many employers do them. What is the advantage to an internal audit? a. ability to assure investors that financial reports are reliable b. to better understand how external documents are prepared c. to create specialization in types of review, such as legal, staffing, or manufacturing d. to identify significant aspects of accounting systems, other than technical correctness e. to monitor financial activities in real time

to identify significant aspects of accounting systems, other than technical correctness