Question 1

Budgets serve managers in all of the following important ways  except ____________.

Accepted Answer

A)  allocation and coordination of resources
B)  monitoring of systems
C)  controlling of expenditures
D)  inspecting resourcesE) None of the above
F) C) and D)

Question 2

Effective feedback from the controlling process should indicate the progress or regression of the objectives.

Accepted Answer

A) True 
 B)False

Question 3

The percentage of an organization's work force not at work on any given day is ____________.

Accepted Answer

A)  turnover
B)  absenteeism
C)  employee behavior
D)  employee attendanceE) A) and C)
F) None of the above

Question 4

Financial resources are central to management.

Accepted Answer

A) True 
 B)False

Question 5

There is usually a direct correlation between the complexity of a control and the amount of confusion it generates.

Accepted Answer

A) True 
 B)False

Question 6

____________ is a process quality goal that helps companies deliver near perfect.

Accepted Answer

A)  Six Sigma
B)  Management productivity monitor
C)  Quality management
D)  Motorola-Quality-ServiceE) B) and D)
F) B) and C)

Question 7

Match the options below with the correct phrase:
-marketing research

Accepted Answer

A)  a relationship of two numbers
B)  income - expenses = profit or loss
C)  a budget that always must be justified from "square one"
D)  a formal investigation conducted to determine if financial documents are correct and consistent with the organization's policies, rules, and procedures
E)  treats employees as assetsF) details how each financial responsibility center will manage its cashG) provides estimates of revenues and expenses for a given period of timeH) assets = liabilities + stockholders' equityI) each financial responsibility center's financial planJ) an organizational unit that contributes costs, revenues, profits, or investmentsK) involves selecting two critical figures from a financial statement and expressing their relationship as a ratio or percentageL) a feedforward control technique thatM) a person responsible for planning and overseeing managment of all risksN) a disciplined process that focuses on developing near-perfect productsO) cash flow statementP) designed to measure and monitor specific aspects of an organizationQ) an inventory control system that matches purchasing with needR) F) and K)
S) E) and H)

Question 8

A budget is a concurrent control.

Accepted Answer

A) True 
 B)False

Question 9

A(n) ____________ is any guideline or benchmark established as a basis for measurement or point of reference.

Accepted Answer

A)  indication
B)  rule of thumb
C)  estimation
D)  standardE) B) and C)
F) A) and B)

Question 10

If managers want to design controls that will be accepted they should:

Accepted Answer

A)  create easy to follow procedures
B)  let employees "ease into it"
C)  involve employees in the creation process
D)  reward employees for understanding the control mechanismsE) B) and D)
F) A) and B)

Question 11

Match the options below with the correct phrase:
-ratio

Accepted Answer

A)  a relationship of two numbers
B)  income - expenses = profit or loss
C)  a budget that always must be justified from "square one"
D)  a formal investigation conducted to determine if financial documents are correct and consistent with the organization's policies, rules, and procedures
E)  treats employees as assetsF) details how each financial responsibility center will manage its cashG) provides estimates of revenues and expenses for a given period of timeH) assets = liabilities + stockholders' equityI) each financial responsibility center's financial planJ) an organizational unit that contributes costs, revenues, profits, or investmentsK) involves selecting two critical figures from a financial statement and expressing their relationship as a ratio or percentageL) a feedforward control technique thatM) a person responsible for planning and overseeing managment of all risksN) a disciplined process that focuses on developing near-perfect productsO) cash flow statementP) designed to measure and monitor specific aspects of an organizationQ) an inventory control system that matches purchasing with needR) F) and J)
S) E) and F)

Question 12

Control techniques are used to measure and monitor the performances of an organization,its people,and its processes.

Accepted Answer

A) True 
 B)False

Question 13

Fixed assets are assets that are normally converted into cash within one year from the date of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

Match the options below with the correct phrases:
-standard

Accepted Answer

A)  an area of operations that directly affects the survival of a firm and the success of its most essential activities
B)  feedforward, concurrent, and feedback controls
C)  a control that focuses on results
D)  a guideline or benchmark for measurement
E)  in-process controls (during the "event") F) a control that prevents defectsG) the process through which standards for the performance of people and processes are appliedH) establishing performance standards, measuring performance, comparing measured performance to established standards, and taking corrective actionI) A) and H)
J) A) and D)

Question 15

Match the options below with the correct phrase:
-financial responsibility center

Accepted Answer

A)  a relationship of two numbers
B)  income - expenses = profit or loss
C)  a budget that always must be justified from "square one"
D)  a formal investigation conducted to determine if financial documents are correct and consistent with the organization's policies, rules, and procedures
E)  treats employees as assetsF) details how each financial responsibility center will manage its cashG) provides estimates of revenues and expenses for a given period of timeH) assets = liabilities + stockholders' equityI) each financial responsibility center's financial planJ) an organizational unit that contributes costs, revenues, profits, or investmentsK) involves selecting two critical figures from a financial statement and expressing their relationship as a ratio or percentageL) a feedforward control technique thatM) a person responsible for planning and overseeing managment of all risksN) a disciplined process that focuses on developing near-perfect productsO) cash flow statementP) designed to measure and monitor specific aspects of an organizationQ) an inventory control system that matches purchasing with needR) I) and L)
S) F) and K)

Question 16

Performance appraisals and attitude surveys are a part of ____________.

Accepted Answer

A)  accounting
B)  human resource controls
C)  inventory controls
D)  financial controlsE) C) and D)
F) None of the above

Question 17

Match the options below with the correct phrase:
-financial budget

Accepted Answer

A)  a relationship of two numbers
B)  income - expenses = profit or loss
C)  a budget that always must be justified from "square one"
D)  a formal investigation conducted to determine if financial documents are correct and consistent with the organization's policies, rules, and procedures
E)  treats employees as assetsF) details how each financial responsibility center will manage its cashG) provides estimates of revenues and expenses for a given period of timeH) assets = liabilities + stockholders' equityI) each financial responsibility center's financial planJ) an organizational unit that contributes costs, revenues, profits, or investmentsK) involves selecting two critical figures from a financial statement and expressing their relationship as a ratio or percentageL) a feedforward control technique thatM) a person responsible for planning and overseeing managment of all risksN) a disciplined process that focuses on developing near-perfect productsO) cash flow statementP) designed to measure and monitor specific aspects of an organizationQ) an inventory control system that matches purchasing with needR) G) and Q)
S) H) and P)

Question 18

A ratio expresses the relationship between numbers.

Accepted Answer

A) True 
 B)False

Question 19

Corporate assets such as land,buildings,and heavy equipment are itemized with ____________ budgets.

Accepted Answer

A)  cash
B)  profit
C)  revenue
D)  capital expendituresE) None of the above
F) A) and B)

Question 20

Match the options below with the correct phrase:
-income statement

Accepted Answer

A)  a relationship of two numbers
B)  income - expenses = profit or loss
C)  a budget that always must be justified from "square one"
D)  a formal investigation conducted to determine if financial documents are correct and consistent with the organization's policies, rules, and procedures
E)  treats employees as assetsF) details how each financial responsibility center will manage its cashG) provides estimates of revenues and expenses for a given period of timeH) assets = liabilities + stockholders' equityI) each financial responsibility center's financial planJ) an organizational unit that contributes costs, revenues, profits, or investmentsK) involves selecting two critical figures from a financial statement and expressing their relationship as a ratio or percentageL) a feedforward control technique thatM) a person responsible for planning and overseeing managment of all risksN) a disciplined process that focuses on developing near-perfect productsO) cash flow statementP) designed to measure and monitor specific aspects of an organizationQ) an inventory control system that matches purchasing with needR) K) and P)
S) C) and J)

Exam 16: Control: Purpose, Process, and Techniques

If managers want to design controls that will be accepted they should:

Correct AnswerverifiedShow Answer

Match the options below with the correct phrases: -standard

Correct AnswerverifiedShow Answer

Match the options below with the correct phrase: -financial responsibility center

Correct AnswerverifiedShow Answer

A ratio expresses the relationship between numbers.

Correct AnswerverifiedShow Answer

Control techniques are used to measure and monitor the performances of an organization,its people,and its processes.

Correct AnswerverifiedShow Answer

Corporate assets such as land,buildings,and heavy equipment are itemized with ____________ budgets.

Correct AnswerverifiedShow Answer

There is usually a direct correlation between the complexity of a control and the amount of confusion it generates.

Correct AnswerverifiedShow Answer

The percentage of an organization's work force not at work on any given day is ____________.

Correct AnswerverifiedShow Answer

Effective feedback from the controlling process should indicate the progress or regression of the objectives.

Correct AnswerverifiedShow Answer

Match the options below with the correct phrase: -marketing research

Correct AnswerverifiedShow Answer

Performance appraisals and attitude surveys are a part of ____________.

Correct AnswerverifiedShow Answer

A budget is a concurrent control.

Correct AnswerverifiedShow Answer

Match the options below with the correct phrase: -ratio

Correct AnswerverifiedShow Answer

Match the options below with the correct phrase: -financial budget

Correct AnswerverifiedShow Answer

Financial resources are central to management.

Correct AnswerverifiedShow Answer

Fixed assets are assets that are normally converted into cash within one year from the date of the balance sheet.

Correct AnswerverifiedShow Answer

____________ is a process quality goal that helps companies deliver near perfect.

Correct AnswerverifiedShow Answer

Budgets serve managers in all of the following important ways except ____________.

Correct AnswerverifiedShow Answer

Match the options below with the correct phrase: -income statement

Correct AnswerverifiedShow Answer

A(n) ____________ is any guideline or benchmark established as a basis for measurement or point of reference.

Correct AnswerverifiedShow Answer

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