Question 1

Liquidity ratios indicate a company's ability to meet its long-term financial obligations.

Accepted Answer

A) True 
 B)False

Question 2

Casinos control card dealers in a variety of ways.Which of the following would be the most correct tool to use for control?

Accepted Answer

A)  Requiring dealers to have a driver's license before being hired
B)  Using closed-circuit cameras,two way mirrors and direct supervision
C)  Requiring detailed paperwork to audit the transfer of shifts
D)  Requiring employees to be searched before they leave the premises
E)  Requiring dealers to empty their pockets before beginning workF) A) and B)
G) A) and E)

Question 3

Discuss the downside of bureaucratic control and describe an example of rigid bureaucratic behavior.

Accepted Answer

The answer of Discuss the downside of bureaucratic control and...

Question 4

Ideally the transfer price should reflect less than the price that the receiving business unit would have to pay for that product/service in the marketplace.

Accepted Answer

A) True 
 B)False

Question 5

By definition,management audits are internal,not external.

Accepted Answer

A) True 
 B)False

Question 6

The amounts a corporation owes to creditors are referred to as

Accepted Answer

A)  liabilities.
B)  assets.
C)  stockholders' equity.
D)  leverage.
E)  ROI.F) B) and C)
G) C) and E)

Question 7

A manager designing a control system should evaluate the information provided by the system in terms of which of the following questions?

Accepted Answer

A)  Does the system provide people more than enough data?
B)  Does the system provide information about how other parts of the organization are doing?
C)  Does the system provide the information to decision makers only at the top of the organization?
D)  Does the system provide people with data relevant to the decisions they need to make?
E)  Does it provide information about HR?F) C) and E)
G) A) and D)

Question 8

List and give an example of each of the four types of performance standards.

Accepted Answer

The answer of List and give an example of each...

Question 9

Employees resist formal control systems for which of the following reasons?

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 maintain individuals' expertise.
D)  Control systems insure employees' security.
E)  Control systems require cooperation between employees.F) B) and E)
G) A) and D)

Question 10

Procedures used to verify accounting reports and statements are referred to as a(n)

Accepted Answer

A)  management audits.
B)  accounting audits.
C)  activity-based costing (AB
C)  .
D)  financial analysis.
E)  budget audit.F) B) and C)
G) C) and E)

Question 11

Which of the following is a guideline provided by your text for managing in an empowered setting?

Accepted Answer

A)  Put control where the best people are
B)  Build on trust
C)  Use reactive controls
D)  Base control on company norms
E)  Reinforce responsiveness and teamworkF) A) and B)
G) A) and E)

Question 12

Formal bureaucratic control systems have always been the most pervasive and the most effective in organizations.

Accepted Answer

A) True 
 B)False

Question 13

As long as supervisors monitor behavior,timing of the feedback is unimportant.

Accepted Answer

A) True 
 B)False

Question 14

A transfer price is the price charged by one unit for a good or service provided to another unit within the organization.

Accepted Answer

A) True 
 B)False

Question 15

External audits can be used for which of the following?

Accepted Answer

A)  Evaluating financial stability
B)  Evaluating production efficiency
C)  Evaluating sales effectiveness
D)  Indentifying possible mergers or acquisitions
E)  Identifying earnings potentialF) B) and C)
G) All of the above

Question 16

Perhaps the greatest benefit of activity based costing is

Accepted Answer

A)  the simplicity.
B)  the acknowledgment of employee effort.
C)  the ability to highlight and monitor costly activities.
D)  the acceptance by stockholders of other sources of financing.
E)  the ability to monitor the board of directors.F) B) and E)
G) D) and E)

Question 17

An evaluation conducted by one organization of another organization is referred to as a(n)

Accepted Answer

A)  external audit.
B)  management audit.
C)  internal audit.
D)  accounting audit.
E)  budget audit.F) C) and E)
G) A) and C)

Question 18

Increasingly,managers are discovering that control systems based solely on bureaucratic and market mechanisms are insufficient for directing today's workforce.

Accepted Answer

A) True 
 B)False

Question 19

Using budgeting,statistical reports and performance appraisals to regulate behavior and results are all considered components of

Accepted Answer

A)  clan control.
B)  market control.
C)  bureaucratic control.
D)  financial audits.
E)  management audits.F) All of the above
G) A) and C)

Question 20

Liquidity ratios

Accepted Answer

A)  indicate the company's ability to pay short-term debts.
B)  include current ratios and debt-equity ratios.
C)  indicate management's ability to generate a financial return on sales or investment.
D)  include profitability and turnover ratios.
E)  indicate the company's ability to pay long-term debts.F) D) and E)
G) B) and D)

Exam 16: Managerial Control

Increasingly,managers are discovering that control systems based solely on bureaucratic and market mechanisms are insufficient for directing today's workforce.

Correct AnswerverifiedShow Answer

A transfer price is the price charged by one unit for a good or service provided to another unit within the organization.

Correct AnswerverifiedShow Answer

Perhaps the greatest benefit of activity based costing is

Correct AnswerverifiedShow Answer

A manager designing a control system should evaluate the information provided by the system in terms of which of the following questions?

Correct AnswerverifiedShow Answer

Employees resist formal control systems for which of the following reasons?

Correct AnswerverifiedShow Answer

Liquidity ratios indicate a company's ability to meet its long-term financial obligations.

Correct AnswerverifiedShow Answer

By definition,management audits are internal,not external.

Correct AnswerverifiedShow Answer

Ideally the transfer price should reflect less than the price that the receiving business unit would have to pay for that product/service in the marketplace.

Correct AnswerverifiedShow Answer

An evaluation conducted by one organization of another organization is referred to as a(n)

Correct AnswerverifiedShow Answer

External audits can be used for which of the following?

Correct AnswerverifiedShow Answer

Procedures used to verify accounting reports and statements are referred to as a(n)

Correct AnswerverifiedShow Answer

Using budgeting,statistical reports and performance appraisals to regulate behavior and results are all considered components of

Correct AnswerverifiedShow Answer

Casinos control card dealers in a variety of ways.Which of the following would be the most correct tool to use for control?

Correct AnswerverifiedShow Answer

Which of the following is a guideline provided by your text for managing in an empowered setting?

Correct AnswerverifiedShow Answer

Liquidity ratios

Correct AnswerverifiedShow Answer

Discuss the downside of bureaucratic control and describe an example of rigid bureaucratic behavior.

Correct AnswerverifiedShow Answer

The amounts a corporation owes to creditors are referred to as

Correct AnswerverifiedShow Answer

List and give an example of each of the four types of performance standards.

Correct AnswerverifiedShow Answer

As long as supervisors monitor behavior,timing of the feedback is unimportant.

Correct AnswerverifiedShow Answer

Formal bureaucratic control systems have always been the most pervasive and the most effective in organizations.

Correct AnswerverifiedShow Answer

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