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What is control,what is its purpose,and why do organizations need it?

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Control is making something happen the w...

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Which of the following is a step in the control process?


A) Complete a job redesign.
B) Evaluate opportunities.
C) Compare work units to one another.
D) Implement TQM.
E) Establish standards.

F) All of the above
G) A) and B)

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Gina was recently promoted to facilities director at Wholesome Grains.Which of the following should she do immediately as she tries to improve productivity?


A) Use the established technology with which her employees are most familiar.
B) Rotate all personnel so that each has an opportunity to try something new.
C) Hire new employees such that they are similar to those already on the team.
D) Establish a system of measurement.
E) Cut costs.

F) B) and C)
G) D) and E)

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

A) True
B) False

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Which of the following is not one of the reasons that control is needed in an organization?


A) to adapt to change and uncertainty
B) to detect opportunities
C) to eliminate the need for teamwork
D) to deal with complexity
E) to decentralize decision making

F) B) and C)
G) A) and E)

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

A) True
B) False

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Which of the following is not characteristic of an external audit?


A) performed by CPAs
B) primarily used when management suspects embezzlement
C) performed by an independent organization
D) verifies that generally accepted accounting principles have been followed
E) verifies the accuracy and fairness of financial statements

F) C) and D)
G) B) and E)

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Standards can be set for almost anything and be narrow or broad.

A) True
B) False

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


A) continuous improvement team
B) work group
C) self-managed team
D) unit
E) special-purpose team

F) C) and D)
G) B) and C)

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Performance measures can be obtained through oral reports.

A) True
B) False

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A sales forecast is an example of an organizational control from the _____ area.


A) informational
B) physical
C) human resources
D) financial
E) capital

F) None of the above
G) A) and C)

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Control systems should be flexible.

A) True
B) False

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A capital expenditures budget anticipates investments in major assets such as land,buildings,and major equipment.

A) True
B) False

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

A) True
B) False

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Reduced cycle time means an increase in steps in a work process.

A) True
B) False

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One of the reasons that measurement-managed firms succeed is due to strong teamwork and cooperation among the management team and more willingness to take risks.

A) True
B) False

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Describe the barriers to the success of control systems.Consider one of your college classes as an example and your instructor as someone who would like to have good control systems in place.Explain if and how the barriers have detracted from performance in the class.

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The barriers are:
• Too much control.
• ...

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The purpose of planning is to make sure that performance meets objectives.

A) True
B) False

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Which of the following is not a characteristic of a successful control system?


A) strategic and results-oriented
B) timely,accurate,and objective
C) realistic,positive,and understandable
D) encourages self-control
E) inflexible to optimize control

F) A) and B)
G) D) and E)

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Which of the following is not a financial control?


A) budgets
B) financial statements
C) ratio analysis
D) audits
E) RATER

F) A) and B)
G) A) and C)

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