Question 1

One characteristic of incremental budgeting is that it

Accepted Answer

A)  allows comparison using various units, like labor hours and dollars.
B)  is flexible towards changing environmental demands.
C)  locks managers into stable spending arrangements.
D)  allows easy comparison of different departments doing different activities.
E)  requires more time from managers than zero-based budgeting.F) All of the above
G) A) and D)

Question 2

The 1960s were characterized by very low productivity in the United States.

Accepted Answer

A) True 
 B)False

Question 3

An internal audit is a verification of an organization's financial accounts and statements by the organization's own professional staff.

Accepted Answer

A) True 
 B)False

Question 4

Measurement-managed companies are those in which senior management agrees on measureable criteria to determine strategic success.

Accepted Answer

A) True 
 B)False

Question 5

Managers should develop control standards when they are developing strategic plans.

Accepted Answer

A) True 
 B)False

Question 6

A team that meets to solve a onetime problem is called a

Accepted Answer

A)  continuous improvement team.
B)  work group.
C)  self-managed team.
D)  special-purpose team.
E)  department.F) D) and E)
G) A) and B)

Question 7

Which of the following standards is the most difficult to measure directly?

Accepted Answer

A)  An increase in insurance policies sales month to month.
B)  Stable material costs.
C)  More effective teamwork.
D)  0.5% of products rejected for poor quality.
E)  Reduced energy costs compared to the same month last year.F) C) and D)
G) A) and B)

Question 8

Which of the following may be done as corrective action in the control process?

Accepted Answer

A)  Evaluate performance.
B)  Revise standards.
C)  Compare performance to standards.
D)  Align processes with goals.
E)  Establish standards.F) B) and E)
G) B) and C)

Question 9

Which of the following best describes ERP systems?

Accepted Answer

A)  Information systems that integrate all aspects of business.
B)  Comprehensive systems for identifying and measuring changes in productivity.
C)  Popular recruiting systems that help to maximize diversity in the workplace.
D)  Training systems for employees that allow self-discovery and correction of weaknesses.
E)  Control systems in which managers are made aware of all deviations from standards.F) A) and B)
G) B) and E)

Question 10

A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n)

Accepted Answer

A)  standardized budget.
B)  incremental budget.
C)  zero-based budget.
D)  fixed budget.
E)  tactical budget.F) A) and B)
G) A) and E)

Question 11

Gulf Satellite has restructured its procedures for service calls, reducing the number of steps involved so that employees can finish each call faster.Gulf has engaged in reduced cycle time.

Accepted Answer

A) True 
 B)False

Question 12

Tara was required to take a word processing test as part of her application for an executive assistant position.This control is part of the ______ area.

Accepted Answer

A)  human resources
B)  physical
C)  financial
D)  informational
E)  structuralF) A) and B)
G) B) and C)

Question 13

Standards are best measured when they can be made quantifiable.

Accepted Answer

A) True 
 B)False

Question 14

Typically, operational control is accomplished through reports issued

Accepted Answer

A)  daily.
B)  weekly.
C)  monthly.
D)  quarterly or less frequently.
E)  randomly.F) A) and E)
G) A) and D)

Question 15

A formal financial projection is known as a budget.

Accepted Answer

A) True 
 B)False

Question 16

On her first visit to a new doctor's office, Melanie noted the fine furniture in the lobby and the crisp white coats that each of the staff wore.She was judging the tangibles dimension of the RATER scale.

Accepted Answer

A) True 
 B)False

Question 17

Raising productivity contributes to an increasing gross domestic product in the United States.

Accepted Answer

A) True 
 B)False

Question 18

Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Accepted Answer

A) True 
 B)False

Question 19

The amount of acceptable deviation from a standard, determined when the standard was established, is called the

Accepted Answer

A)  span of exception.
B)  range of variation.
C)  breadth control.
D)  benchmark.
E)  zero-based control.F) None of the above
G) D) and E)

Question 20

One difficulty with incremental budgets is that they tend to lock departments into stable spending arrangements.

Accepted Answer

A) True 
 B)False

Exam 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

Raising productivity contributes to an increasing gross domestic product in the United States.

Correct AnswerverifiedShow Answer

Standards are best measured when they can be made quantifiable.

Correct AnswerverifiedShow Answer

Measurement-managed companies are those in which senior management agrees on measureable criteria to determine strategic success.

Correct AnswerverifiedShow Answer

The amount of acceptable deviation from a standard, determined when the standard was established, is called the

Correct AnswerverifiedShow Answer

Typically, operational control is accomplished through reports issued

Correct AnswerverifiedShow Answer

On her first visit to a new doctor's office, Melanie noted the fine furniture in the lobby and the crisp white coats that each of the staff wore.She was judging the tangibles dimension of the RATER scale.

Correct AnswerverifiedShow Answer

Which of the following best describes ERP systems?

Correct AnswerverifiedShow Answer

A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n)

Correct AnswerverifiedShow Answer

Gulf Satellite has restructured its procedures for service calls, reducing the number of steps involved so that employees can finish each call faster.Gulf has engaged in reduced cycle time.

Correct AnswerverifiedShow Answer

A team that meets to solve a onetime problem is called a

Correct AnswerverifiedShow Answer

One difficulty with incremental budgets is that they tend to lock departments into stable spending arrangements.

Correct AnswerverifiedShow Answer

An internal audit is a verification of an organization's financial accounts and statements by the organization's own professional staff.

Correct AnswerverifiedShow Answer

A formal financial projection is known as a budget.

Correct AnswerverifiedShow Answer

One characteristic of incremental budgeting is that it

Correct AnswerverifiedShow Answer

Which of the following standards is the most difficult to measure directly?

Correct AnswerverifiedShow Answer

Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Correct AnswerverifiedShow Answer

Tara was required to take a word processing test as part of her application for an executive assistant position.This control is part of the ______ area.

Correct AnswerverifiedShow Answer

The 1960s were characterized by very low productivity in the United States.

Correct AnswerverifiedShow Answer

Managers should develop control standards when they are developing strategic plans.

Correct AnswerverifiedShow Answer

Which of the following may be done as corrective action in the control process?

Correct AnswerverifiedShow Answer

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