Question 1

Olivia has recently reviewed a number of indicators of financial control. The ones that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?

Accepted Answer

A)   profit and loss statement
B)   profitability ratio
C)   leverage ratio
D)   current ratio
E)   return on investmentF) A) and D)
G) D) and E)

Question 2

Based on the given description, which of the following control systems does Taffe Inc. follow?

Accepted Answer

A)   bureaucratic
B)   market
C)   clan
D)   feedforward
E)   concurrentF) A) and B)
G) A) and C)

Question 3

_____ indicates the company's ability to meet its long-term financial obligations.

Accepted Answer

A)   Profitability ratio
B)   Liquidity ratio
C)   Debt-equity ratio
D)   Current ratio
E)   Net working capital ratioF) C) and D)
G) A) and B) C

Question 4

________ control is based on the norms, values, shared goals, and trust among group members.

Accepted Answer

A)   Clan
B)   Feedback
C)   Concurrent
D)   Feedforward
E)   MarketF) A) and E)
G) None of the above

Question 5

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

Accepted Answer

A)   Empowerment
B)   Authority control
C)   Bureaucratic control
D)   Cultural control
E)   Clan controlF) C) and E)
G) D) and E)

Question 6

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

Accepted Answer

A) True 
 B)False

Question 7

_____ motivates people and provides information that enables them to correct their own deviations from performance standards.

Accepted Answer

A)   Strategic window
B)   Groupthink
C)   Management myopia
D)   Feedback
E)   ProvincialismF) A) and E)
G) A) and B)

Question 8

Which type of bureaucratic control takes place while plans are being carried out?

Accepted Answer

A)   feedback control
B)   specialist control
C)   preliminary control
D)   feedforward control
E)   concurrent controlF) C) and E)
G) B) and C) E

Question 9

Allowing people to initiate their own corrective action encourages self-control and reduces the need for outside supervision.

Accepted Answer

A) True 
 B)False

Question 10

To be effective, control systems must

Accepted Answer

A)   be based on subjective standards.
B)   communicate needed information upward in the organization.
C)   be acceptable to top stockholders.
D)   use multiple approaches.
E)   centralize decision making.F) A) and E)
G) D) and E)

Question 11

Which of the following is the second stage of budgetary control?

Accepted Answer

A)   responding appropriately
B)   performing budgetary operations
C)   comparing Six Sigma data
D)   establishing expectancies
E)   taking actionF) B) and D)
G) C) and D)

Question 12

Empowerment is important in organizations today because

Accepted Answer

A)   the nature of management has changed.
B)   employees' jobs have become less challenging.
C)   employees are more concerned about pay.
D)   labor unions are growing.
E)   role of technology has increased.F) C) and E)
G) A) and E)

Question 13

Which of the following is a reason why employees resist control systems?

Accepted Answer

A)   Control systems can change the power structure of the organization.
B)   Control systems make employees less accountable for their performance.
C)   Control systems decrease the accuracy of performance data.
D)   Control systems ensure the security of employees.
E)   Control systems require cooperation between employees.F) A) and B)
G) A) and C)

Question 14

_____ are the amounts the corporation owes to various creditors.

Accepted Answer

A)   Liabilities
B)   Equities
C)   Dividends
D)   Profits
E)   AssetsF) A) and E)
G) All of the above

Question 15

Effective managers make sure that activities are going as planned with the help of control.

Accepted Answer

A) True 
 B)False

Question 16

_____ increase the accuracy of performance data and make employees more accountable for their actions.

Accepted Answer

A)   Profitability ratios
B)   Bureaucratic controls
C)   Tactical behaviors
D)   Comprehensive control systems
E)   Expense reportsF) C) and D)
G) All of the above

Question 17

Describe feedback control, feedforward control, and concurrent control.

Accepted Answer

Bureaucratic control...

Question 18

_____ provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

Accepted Answer

A)   Internal audits
B)   Internal evaluations
C)   External audits
D)   Financial questions
E)   Legal briefsF) C) and D)
G) A) and B)

Question 19

Palin Inc. has started a new system of allocating costs according to what their employees do, rather than what the company spends. For example, labor expenses are allocated to employee tasks rather than salary and benefits. This practice is referred to as

Accepted Answer

A)   cost accounting.
B)   accounting auditing.
C)   task accounting.
D)   activity-based costing.
E)   allocation costing.F) B) and C)
G) B) and E)

Question 20

An)  _______ is an itemized financial document of the income and the expenses of a company's operations.

Accepted Answer

A)   balanced scorecard
B)   appropriation account
C)   surplus
D)   fiscal policy
E)   profit and loss statementF) A) and E)
G) A) and D) E

Exam 14: Managerial Control

Olivia has recently reviewed a number of indicators of financial control. The ones that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?

Correct AnswerverifiedShow Answer

Based on the given description, which of the following control systems does Taffe Inc. follow?

Correct AnswerverifiedShow Answer

_____ indicates the company's ability to meet its long-term financial obligations.

Correct AnswerverifiedC

________ control is based on the norms, values, shared goals, and trust among group members.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

Correct AnswerverifiedShow Answer

_____ motivates people and provides information that enables them to correct their own deviations from performance standards.

Correct AnswerverifiedShow Answer

Which type of bureaucratic control takes place while plans are being carried out?

Correct AnswerverifiedE

Allowing people to initiate their own corrective action encourages self-control and reduces the need for outside supervision.

Correct AnswerverifiedShow Answer

To be effective, control systems must

Correct AnswerverifiedShow Answer

Which of the following is the second stage of budgetary control?

Correct AnswerverifiedShow Answer

Empowerment is important in organizations today because

Correct AnswerverifiedShow Answer

Which of the following is a reason why employees resist control systems?

Correct AnswerverifiedShow Answer

_____ are the amounts the corporation owes to various creditors.

Correct AnswerverifiedShow Answer

Effective managers make sure that activities are going as planned with the help of control.

Correct AnswerverifiedShow Answer

_____ increase the accuracy of performance data and make employees more accountable for their actions.

Correct AnswerverifiedShow Answer

Describe feedback control, feedforward control, and concurrent control.

Correct AnswerverifiedBureaucratic control...View AnswerShow Answer

_____ provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

Correct AnswerverifiedShow Answer

Palin Inc. has started a new system of allocating costs according to what their employees do, rather than what the company spends. For example, labor expenses are allocated to employee tasks rather than salary and benefits. This practice is referred to as

Correct AnswerverifiedShow Answer

An) _______ is an itemized financial document of the income and the expenses of a company's operations.

Correct AnswerverifiedE

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E

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Bureaucratic control...
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E