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| 1 | |
When practicing control, the manager must be able to balance stability and objective realization. |
| | A) | True |
| | B) | False |
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| 2 | |
A control tolerance is any variance from the standard that is unacceptable to the manager. |
| | A) | True |
| | B) | False |
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| 3 | |
Informational controls are the top level of the control pyramid. |
| | A) | True |
| | B) | False |
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| 4 | |
Behavior control and output control are substitutes for each other. |
| | A) | True |
| | B) | False |
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| 5 | |
Management inspection attempts to evaluate the overall management practices and policies of the organization. |
| | A) | True |
| | B) | False |
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| 6 | |
__________ is the process of ensuring that organizational activities are going according to plan. |
| | A) | Control |
| | B) | Feedback |
| | C) | Support |
| | D) | Monitoring |
| | E) | Regulation |
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| 7 | |
To manage control, a manager should do any of the following EXCEPT: |
| | A) | customize outputs. |
| | B) | appraise employee performance. |
| | C) | prevent crises. |
| | D) | update plans. |
| | E) | protect the organization's assets. |
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| 8 | |
A system in which outputs from the system affect future inputs or future activities is called a(n): |
| | A) | standard system. |
| | B) | feedback system. |
| | C) | monitoring system. |
| | D) | correction system. |
| | E) | control system. |
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| 9 | |
The three requirements for the process of control are establishing standards, correcting deviancies, and: |
| | A) | giving feedback. |
| | B) | testing methods. |
| | C) | adjusting tolerances. |
| | D) | monitoring results. |
| | E) | changing responses. |
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| 10 | |
A __________ is a value used as a point of reference for comparing other values. |
| | A) | model |
| | B) | gauge |
| | C) | standard |
| | D) | template |
| | E) | control |
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| 11 | |
Tools used for correcting deviations in control should have all of the following characteristics EXCEPT: |
| | A) | They should be used to eliminate root causes of a problem. |
| | B) | They should be applied piecemeal rather than totally. |
| | C) | They should be simple and straightforward. |
| | D) | They should be easy for employees to tie to goals or standards for improvement. |
| | E) | They should be capable of correcting defects. |
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| 12 | |
Which of the following is NOT a level in the control pyramid? |
| | A) | Foolproof control |
| | B) | Automatic control |
| | C) | Operator control |
| | D) | Competitor control |
| | E) | Informational control |
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| 13 | |
When deciding just how much control should be exercised in an organization, the three major factors that must be appraised are: (1) economic considerations, (2) flexibility and innovation considerations, and (3): |
| | A) | competitor considerations. |
| | B) | structural considerations. |
| | C) | supervisory considerations. |
| | D) | automatic considerations. |
| | E) | behavioral considerations. |
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| 14 | |
A control method that is based on direct, personal surveillance is called: |
| | A) | postaction control. |
| | B) | observation control. |
| | C) | behavior control. |
| | D) | output control. |
| | E) | concurrent control. |
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| 15 | |
A method of exercising control to prevent a problem from occurring is called: |
| | A) | preliminary control |
| | B) | concurrent control |
| | C) | postaction control |
| | D) | behavior control |
| | E) | output control |
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| 16 | |
__________ control is designed to detect an existing or a potential problem before it gets out of hand. |
| | A) | Preliminary |
| | B) | Concurrent |
| | C) | Postaction |
| | D) | Output |
| | E) | Budgetary |
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| 17 | |
__________ is a form of budgeting in which the manager must build and justify each area of a budget and each activity is identified, evaluated, and ranked by importance |
| | A) | Balance sheet budgeting |
| | B) | Revenue and expense budgeting |
| | C) | Cash budgeting |
| | D) | Capital expenditure budgeting |
| | E) | Zero-base budgeting |
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| 18 | |
Which type of ratio indicates the organization's operational efficiency, or how well the organization is being managed? |
| | A) | Liquidity ratio |
| | B) | Debt ratio |
| | C) | Activity ratio |
| | D) | Profitability ratio |
| | E) | Liability ratio |
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| 19 | |
__________ ratios are used to judge how well an organization will be able to meet its short-term financial obligations. |
| | A) | Profitability |
| | B) | Activity |
| | C) | Organizational |
| | D) | Liquidity |
| | E) | Debt |
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| 20 | |
What type of chart depicts the relationship of volume of operations to profits? |
| | A) | Gantt chart |
| | B) | Break-even chart |
| | C) | Profit analysis chart |
| | D) | Audit chart |
| | E) | Liquidity chart |
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