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First year CH 18 Q

1. An effective control system


a. ensures that activities lead to attainment of the organizations
goals
b. makes people feel good about their jobs
c. facilitates goal achievement
d. all of the above are true
e. both a and c above are true
e

2. Goals of an organization are related, in that,


a. control informs managers that goals are either attained or not
attained
b. control follows up on goal setting to ensure success
c. control serves as feedback from the planning process and
therefore supports goals
d. all of the above are true
e. none of the above are true
d

3. Some managers are reluctant to delegate authority to


subordinates because
a. the managers are tempted to do things themselves
b. control systems are not in existence to support delegation
c. the subordinates might do something wrong and this will
reflect on the manager
d. all of the above are true
e. both a and c are true
d

4. The control process consists of


a. taking managerial action to correct deviations or inadequate
standards
b. comparing actual performance to standards
c. measuring actual performance
d. all of the above are true
e. both a and c are true
d

5. Information for control systems gained from oral reports is


important because the information

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First year CH 18 Q
a. is gained quickly
b. is not filtered
c. removes the tone of the conversations
d. cannot be referenced at a later date
e. can be referenced at a later date
a

6. A source of information that will allow a manager to


develop a control system is
a. personal observation
b. statistical reports
c. written reports
d. oral reports
e. all of the above are true
e

7. A standard control criteria that fits most businesses is


a. keeping costs within budget
b. the value of each person to profit in the firm
c. producing a given output from a given input
d. all of the above are true
e. both a and c are true
e

8. Control that prevents anticipated problems and takes place


in advance of a particular activity is known as
a. feedback control
b. concurrent control
c. feedforward control
d. higher level control
e. lower level control
c

9. Feedforward control is attractive because it


a. specifies the higher-level control functions
b. allows managers to prevent problems
c. allows lower-level control to develop
d. challenges the viability of the control criteria
e. relates controls to goals better than motivation does
b

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First year CH 18 Q
10. Control that takes place while an activity is in progress is
known as
a. feedback control
b. concurrent control
c. feedforward control
d. higher level control
e. lower level control
b

11. An example of concurrent control is


a. direct supervision
b. computer software that alerts it user to problems
c. computerized machine controls
d. a thermostat in a room
e. all of the above are true
e

12. Control that takes place after an activity is completed is


a. feedback control
b. concurrent control
c. feedforward control
d. higher level control
e. lower level control
a

13. A major drawback to feedback control is


a. by the time managers have information, waste has already
occurred
b. managers can make decisions after an activity has occurred
c. managers can not correct problems before the problem occurs
d. that these controls are costly to implement because of the
planning incurred
e. based on knowledge of the particular industry
a

14. Feedback control’s advantage is that it


a. gives an evaluation on the planning process.
b. enhances employee motivation
c. improves communication processes
d. all of the above are true
e. both a and b are true

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First year CH 18 Q
e

15. Which of the following is true relative to control?


a. Small organizations rely more on formal control systems.
b. As organizational size increases, formal control systems are
replaced by direct supervision.
c. Small organizations typically rely on highly formalized and
impersonal feedforward controls.
d. Small organizations typically rely on highly formalized and
impersonal feedback controls.
e. Concurrent control through direct supervision is the most cost
efficient process in small organizations.
e

16. ____________ is the process of monitoring activities to


ensure that they are being accomplished as expected and
for correcting any significant deviations.
a. Planning
b. Organizing
c. Leading
d. Motivating
e. Controlling
e

17. ____________ is the process of collecting information and is


the first step in control.
a. Taking managerial action
b. Comparing performance to standards
c. Measuring performance
d. Developing standards
e. Evaluating standards
c

18. ____________ is a way of acquiring information to develop


controls.
a. Personal observation
b. Management by walking around (MBWA)
c. Relying on statistical reports
d. Reading written reports
e. all of the above are true

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First year CH 18 Q
e

19. Some variation in performance is expected, so an


acceptable __________ of variation is important so that
excessive control is not utilized.
a. mean
b. median
c. mode
d. range
e. standard deviation
d

20. In correcting actual performance, __________ corrects


problems at once to get performance back on track.
a. immediate corrective action
b. basic corrective action
c. rational corrective action
d. motivational action
e. hygienic action
a

21. Correcting actual performance is not practical if the


___________ is unrealistic.
a. motivation
b. perception
c. standard
d. reward
e. challenge
c

22. Control is the process of monitoring, comparing, and


correcting work performance.

Answer: TRUE

23. The criterion that determines the effectiveness of a


control system is how well it reduces unnecessary costs.

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First year CH 18 Q
Answer: FALSE

24. The value of the control function lies in its relation to


organizational structure.

Answer: FALSE

25. Managers need to control to protect the organization and


its assets.

Answer: TRUE

26. The control process is a two-step process that compares


actual performance against a standard and takes
managerial action to correct deviations or inadequate
standards.

Answer: FALSE

27. Some control criteria, such as employee satisfaction, are


applicable to any management situation.

Answer: TRUE

28. Deviations that exceed the acceptable range of variation


become significant and need the manager's attention.

Answer: TRUE

29. In taking managerial actions, managers must correct


actual performance, as it is the only choice.

Answer: FALSE

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First year CH 18 Q
30. Basic corrective action is aimed at correcting more
generalized problems as quickly as possible, leaving more
detailed action for later.

Answer: FALSE

31. Effective managers analyze deviations and, when the


benefits justify it, take the time to pinpoint and correct the
causes of variance.

Answer: TRUE

32. Performance is the end result of an activity.

Answer: TRUE

33. The most frequently used organizational performance


measures include liquidity, profitability, leverage, and
activity ratios.

Answer: FALSE

34. What guides managerial decisions in designing strategies


and work activities and in coordinating the work of
employees is how well the organization meets its goals.

Answer: TRUE

35. The key to feedforward controls is taking action while the


problem is occurring.

Answer: FALSE

36. Feedforward provides managers with meaningful


information on how effective their planning efforts were.

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First year CH 18 Q
Answer: FALSE

37. Concurrent control prevents anticipated problems since it


takes place before the actual activity.

Answer: FALSE

38. Direct supervision is the best-known form of concurrent


control.

Answer: TRUE

39. Concurrent control relies on feedback.

Answer: FALSE

40. In feedback control, the control takes place after the


activity is done.

Answer: TRUE

41. An example of feedback control is management by


walking around.

Answer: FALSE

42. When organizations "manage" earnings, they "time"


income and expenses to enhance current financial
performance.

Answer: TRUE

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First year CH 18 Q
43. External controls have been enacted to address some of
the problems that have occurred because of "managed"
earnings.

Answer: TRUE

44. Managers can focus on measuring only one performance


area because it presents them with the big picture.

Answer: FALSE

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