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Six sigma companies have a high level of product or service defects.

A) True
B) False

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Empowering employees to make decisions implies giving up control.

A) True
B) False

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What are the reasons people strongly resist control systems?

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Market controls involve the use of:


A) rules and regulations.
B) economic standards.
C) authority.
D) sales and variable costs levels.
E) norms.

F) None of the above
G) B) and E)

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Comprehensive control systems increase the accuracy of performance data and make employees more accountable for their actions.

A) True
B) False

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Scenario A. Use the information given below to answer the following questions. Omega Inc. is a large corporation founded in the 1950s. They produce chemical concentrates for industrial cleaning. They follow a strict set of rules and regulations. They have the ability to track a large amount of data using statistical techniques. Mid Atlantic Health Corp. is a regional medical center. They tie pricing of services and profits to specific services in the medical center. -Based on the given description, which of the following control systems does Mid Atlantic Health follow?


A) Bureaucratic
B) Market
C) Clan
D) Feedforward
E) Concurrent

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

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_____ is the amount accruing to the corporation's owners.


A) Stockholders' equity
B) Liability
C) Dividend
D) Audit
E) Asset

F) All of the above
G) C) and D)

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Max Inc. has started a new system of allocating costs according to what their employees do, rather than what the company spends. For example, labor expenses are allocated to employee tasks rather than salary and benefits. This practice is referred to as:


A) cost accounting.
B) accounting auditing.
C) task accounting.
D) activity-based costing.
E) allocation costing.

F) A) and C)
G) D) and E)

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Why are control systems based solely on bureaucratic and market mechanisms are insufficient for directing today's workforce?

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Control systems based solely on bureaucr...

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At Precision Instruments Corp., a rule has been made instructing all assembly workers to arrive early for their shift in order to wear specialized gear because the products are very sensitive to external particles. These products are assembled in a controlled environment. This requirement reflects _______ control.


A) feedback
B) specialist
C) feedforward
D) operator
E) concurrent

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

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Describe at least four of the different types of budgets that are frequently used.

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1. Operating Budget: This type of budget...

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Scenario B. Use the information given below to answer the following questions. Your manager is speaking to a group of employees about a problem in your department. Employees are not complying with the rules regarding the hours of work done per day. The rules in this situation are very important as the salary is linked to the number of hours worked. There are three suggestions being considered to address this problem: 1. Employees will be monitored at the entrance during shift changes to make sure that everyone enters data correctly. 2. Reports containing data tracking the number of hours worked will be reviewed regularly. Employees violating the rules will be counseled to correct the problem. 3. A new procedure will be developed describing an easier procedure for employees to ensure that they work the required number of hours. Training will be conducted so that each employee knows the policy and the procedure before it is enforced. -Which approach to bureaucratic control is exemplified by the third option?


A) Feedback
B) Feedforward
C) Concurrent
D) Market
E) Clan

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

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The use of rules, regulations, and authority to guide performance is referred to as _____ control.


A) clan
B) bureaucratic
C) market
D) concurrent
E) feedback

F) D) and E)
G) None of the above

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_____ are the amounts the corporation owes to various creditors.


A) Liabilities
B) Equities
C) Dividends
D) Profits
E) Assets

F) A) and D)
G) A) and C)

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Which of the following is the second stage of budgetary control?


A) Responding appropriately
B) Performing budgetary operations
C) Comparing Six Sigma data
D) Establishing expectancies
E) Taking action

F) All of the above
G) None of the above

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Balanced scorecards are intended to keep CEOs focused on the company's longer-term health.

A) True
B) False

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Describe the criteria that effective control systems should meet.

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During challenging economic times when resources are limited and budgets need to be stretched, managerial control becomes insignificant for survival.

A) True
B) False

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In order to gain employee acceptance of useful performance standards, a manager can:


A) set standards that employees view as possible to achieve.
B) set standards low so that all employees can easily meet them.
C) inform employees that he or she might not use the standards.
D) focus on controlling negative behavior.
E) let employees know that he or she takes his or her own performance measures.

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

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Which of the following relationships is true?


A) Assets + Liabilities + Stockholders' equity = 0
B) Assets + Liabilities = Stockholders' equity
C) Assets = Liabilities + Stockholders' equity
D) Assets + Stockholders' equity = Liabilities
E) Assets = Liabilities - Stockholders' equity

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

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