Question 1

The inventory turnover ratio is an example of a(n)

Accepted Answer

A)   steering control.
B)   activity control.
C)   behavior control.
D)   output control.
E)   influencing control.F) A) and B)
G) A) and C) A

Question 2

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

Accepted Answer

A)   ISO 14000 Series
B)   Input controls
C)   Activity-based costing
D)   Enterprise Risk Management
E)   Market Value AddedF) None of the above
G) B) and D)

Question 3

International transfer pricing is primarily used not to evaluate performance, but to minimize taxes.

Accepted Answer

A) True 
 B)False

Question 4

ISO 9000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

Accepted Answer

A) True 
 B)False

Question 5

What term describes when activities originally intended to help managers attain corporate objectives become ends in themselves or are adapted to meet ends other than those for which they were intended?

Accepted Answer

A)   economic rationality
B)   minimal acceptable behavior
C)   goal displacement
D)   closed system thinking
E)   MachiavellianismF) C) and D)
G) B) and E)

Question 6

Stickiness and eyeballs are two non-financial performance measures used by Internet business ventures.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the guidelines for proper control.

Accepted Answer

The following guidelines are recommended...

Question 8

Management audits have been developed to evaluate activities such as corporate social responsibility, functional areas such as the marketing department, and divisions such as the international division.

Accepted Answer

A) True 
 B)False

Question 9

The average benchmarking study may cost approximately ________, and involves 30 weeks of effort.

Accepted Answer

A)   $5,000
B)   $20,000
C)   $50,000
D)   $100,000
E)   $500,000F) A) and E)
G) C) and E)

Question 10

Corporations will emphasize output controls when they are following a strategy of

Accepted Answer

A)   concentric diversification.
B)   conglomerate diversification.
C)   retrenchment.
D)   divestment.
E)   vertical integration.F) B) and E)
G) B) and C) B

Question 11

If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must

Accepted Answer

A)   immediately notify the board of directors.
B)   change the strategic management model.
C)   know about it so that they can correct the employee activity.
D)   allow sufficient time to pass to verify if it is the process or just the usage that is the problem.
E)   check the performance data to ensure their accuracy and take two more measurements.F) D) and E)
G) A) and B)

Question 12

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

Accepted Answer

A)   total quality management.
B)   value-chain analysis.
C)   reengineering.
D)   MBO.
E)   benchmarking.F) B) and C)
G) A) and C)

Question 13

Unlike ROI, managers cannot manipulate the numbers of EVA.

Accepted Answer

A) True 
 B)False

Question 14

The German company SAP AG originated the concept of ERP with its

Accepted Answer

A)   activity-based costing.
B)   transfer pricing.
C)   spreadsheet software.
D)   R/3 software system.
E)   transnational software integrator.F) A) and B)
G) A) and C)

Question 15

The ISO 9000 and 14000 Standards Series as a way to objectively document a company's high level of quality operations are examples of

Accepted Answer

A)   tactical control.
B)   strategic control.
C)   output control.
D)   functional control.
E)   behavior control.F) A) and B)
G) A) and C) E

Question 16

Distinguish between behavior and output controls. Provide examples of each.

Accepted Answer

Behavior controls specify how something ...

Question 17

All of the following are examples of behavior controls EXCEPT

Accepted Answer

A)   monitoring employees' phone calls.
B)   monitoring employees' PCs.
C)   monitoring employees' Internet usage.
D)   using ISO 14000 Standards Series.
E)   sales quotas.F) C) and D)
G) B) and E)

Question 18

People tend to substitute behaviors that are recognized and rewarded for those behaviors that are ignored, without regard to their contribution to goal accomplishment.

Accepted Answer

A) True 
 B)False

Question 19

In one study, 95% of the corporate officers interviewed stated that they use different evaluation techniques for foreign and domestic operations.

Accepted Answer

A) True 
 B)False

Question 20

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Accepted Answer

A)   return on assets.
B)   ROVA.
C)   earnings per share.
D)   shareholder value.
E)   ROI.F) B) and D)
G) B) and C)

Exam 11: Evaluation and Control

The inventory turnover ratio is an example of a(n)

Correct AnswerverifiedA

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

Correct AnswerverifiedShow Answer

International transfer pricing is primarily used not to evaluate performance, but to minimize taxes.

Correct AnswerverifiedShow Answer

ISO 9000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

Correct AnswerverifiedShow Answer

What term describes when activities originally intended to help managers attain corporate objectives become ends in themselves or are adapted to meet ends other than those for which they were intended?

Correct AnswerverifiedShow Answer

Stickiness and eyeballs are two non-financial performance measures used by Internet business ventures.

Correct AnswerverifiedShow Answer

Discuss the guidelines for proper control.

Correct AnswerverifiedThe following guidelines are recommended...View AnswerShow Answer

Management audits have been developed to evaluate activities such as corporate social responsibility, functional areas such as the marketing department, and divisions such as the international division.

Correct AnswerverifiedShow Answer

The average benchmarking study may cost approximately ________, and involves 30 weeks of effort.

Correct AnswerverifiedShow Answer

Corporations will emphasize output controls when they are following a strategy of

Correct AnswerverifiedB

If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must

Correct AnswerverifiedShow Answer

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

Correct AnswerverifiedShow Answer

Unlike ROI, managers cannot manipulate the numbers of EVA.

Correct AnswerverifiedShow Answer

The German company SAP AG originated the concept of ERP with its

Correct AnswerverifiedShow Answer

The ISO 9000 and 14000 Standards Series as a way to objectively document a company's high level of quality operations are examples of

Correct AnswerverifiedE

Distinguish between behavior and output controls. Provide examples of each.

Correct AnswerverifiedBehavior controls specify how something ...View AnswerShow Answer

All of the following are examples of behavior controls EXCEPT

Correct AnswerverifiedShow Answer

People tend to substitute behaviors that are recognized and rewarded for those behaviors that are ignored, without regard to their contribution to goal accomplishment.

Correct AnswerverifiedShow Answer

In one study, 95% of the corporate officers interviewed stated that they use different evaluation techniques for foreign and domestic operations.

Correct AnswerverifiedShow Answer

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Correct AnswerverifiedShow Answer

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A

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The following guidelines are recommended...
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B

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E

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Behavior controls specify how something ...
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