Question 1

Involving employees in both the planning and execution of control systems can bring legitimacy to the process and heighten employee morale.

Accepted Answer

A) True 
 B)False

Question 2

The ISO 9000 quality designation is accepted in over 100 countries around the world.

Accepted Answer

A) True 
 B)False

Question 3

The type of budget that can be adjusted over time for changing environmental conditions is known as a(n)  ______ budget.

Accepted Answer

A)   operating
B)   incremental
C)   zero-based
D)   variable or flexible
E)   cashF) A) and E)
G) A) and B)

Question 4

The singular task of internal auditors is to verify that the organization, in preparing its financial statements, followed generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 5

Profits or losses incurred by an organization are represented in its _____.

Accepted Answer

A)   expense budget
B)   income statement
C)   ratio analysis
D)   capital expenditures budget
E)   balance sheetF) None of the above
G) C) and D)

Question 6

A balance sheet summarizes an organization's overall financial worth, or its assets and liabilities, at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 7

What are the two core principles of TQM? Explain the assumptions underlying each.

Accepted Answer

The two core principles are people and i...

Question 8

In Deming's PDCA cycle, "D" stands for "do," which means to implement the change or make a small-scale test.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

A variable budget does not allow the allocation of resources to vary in proportion with various levels of activity.

Accepted Answer

A) True 
 B)False

Question 11

Customer satisfaction and financial measures are two of four indicators of the balanced scorecard.

Accepted Answer

A) True 
 B)False

Question 12

At Polar Sportswear, orders have significantly exceeded projections, and Chris, the operations director, has decided to hire for a third shift in the plant. Chris is clearly operating with the use of a(n)  ______ budget.

Accepted Answer

A)   zero-based
B)   incremental
C)   cash
D)   fixed
E)   variableF) C) and E)
G) A) and E)

Question 13

Oakley Lumber Mill formed a team to help the organization determine a course of action in the wake of a forest fire that temporarily closed access to its mountain satellite office. This is an example of a _____.

Accepted Answer

A)   cross-functional team
B)   JIT team
C)   special-purpose team
D)   self-managed team
E)   continuous improvement teamF) A) and C)
G) A) and E)

Question 14

Six primary performance areas for measurement management include financial performance, operating efficiency, customer satisfaction, employee performance, innovation/change, and community/environment.

Accepted Answer

A) True 
 B)False

Question 15

Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to _____.

Accepted Answer

A)   ISO 9000
B)   restructuring
C)   reduced cycle time
D)   ISO 14000
E)   statistical process controlF) B) and C)
G) D) and E)

Question 16

One way to improve productivity is to offer less flextime.

Accepted Answer

A) True 
 B)False

Question 17

The acceptable deviation depends on the range of variation built into the standards when they were set.

Accepted Answer

A) True 
 B)False

Question 18

The four management functions are planning, organizing, leading, and motivating.

Accepted Answer

A) True 
 B)False

Question 19

An external 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 20

At UPS, delivery ______ vary according to whether a route is urban, suburban, or rural in nature.

Accepted Answer

A)   RATER scales
B)   standards
C)   ratio analyses
D)   PDCA cycles
E)   strategy mapsF) A) and E)
G) B) and D)

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

The singular task of internal auditors is to verify that the organization, in preparing its financial statements, followed generally accepted accounting principles.

Correct AnswerverifiedShow Answer

At UPS, delivery ______ vary according to whether a route is urban, suburban, or rural in nature.

Correct AnswerverifiedShow Answer

The type of budget that can be adjusted over time for changing environmental conditions is known as a(n) ______ budget.

Correct AnswerverifiedShow Answer

Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to _____.

Correct AnswerverifiedShow Answer

In Deming's PDCA cycle, "D" stands for "do," which means to implement the change or make a small-scale test.

Correct AnswerverifiedShow Answer

One way to improve productivity is to offer less flextime.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The ISO 9000 quality designation is accepted in over 100 countries around the world.

Correct AnswerverifiedShow Answer

A balance sheet summarizes an organization's overall financial worth, or its assets and liabilities, at a specific point in time.

Correct AnswerverifiedShow Answer

At Polar Sportswear, orders have significantly exceeded projections, and Chris, the operations director, has decided to hire for a third shift in the plant. Chris is clearly operating with the use of a(n) ______ budget.

Correct AnswerverifiedShow Answer

What are the two core principles of TQM? Explain the assumptions underlying each.

Correct AnswerverifiedThe two core principles are people and i...View AnswerShow Answer

Oakley Lumber Mill formed a team to help the organization determine a course of action in the wake of a forest fire that temporarily closed access to its mountain satellite office. This is an example of a _____.

Correct AnswerverifiedShow Answer

Profits or losses incurred by an organization are represented in its _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Involving employees in both the planning and execution of control systems can bring legitimacy to the process and heighten employee morale.

Correct AnswerverifiedShow Answer

The acceptable deviation depends on the range of variation built into the standards when they were set.

Correct AnswerverifiedShow Answer

Customer satisfaction and financial measures are two of four indicators of the balanced scorecard.

Correct AnswerverifiedShow Answer

A variable budget does not allow the allocation of resources to vary in proportion with various levels of activity.

Correct AnswerverifiedShow Answer

The four management functions are planning, organizing, leading, and motivating.

Correct AnswerverifiedShow Answer

Six primary performance areas for measurement management include financial performance, operating efficiency, customer satisfaction, employee performance, innovation/change, and community/environment.

Correct AnswerverifiedShow Answer

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The two core principles are people and i...
View Answer

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