12 BSt – Controlling Test 2
The number of attempts remaining is 3
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1. The underlying belief of Management by Exception (MBE) is that:
MBE is based on the belief that controlling everything results in controlling nothing.
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2. The advantage of Management by Exception where routine issues are handled by lower-level staff is described as leaving routine problems to:
MBE focuses attention on important areas and leaves routine problems to subordinates.
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3. Critical Point Control (CPC) requires managers to focus their control efforts primarily on:
CPC focuses control on Key Result Areas (KRAs) that are critical to the success of the organization.
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4. Which modern technique is a computer-based system providing managers with relevant information for effective decision making and control?
MIS (Management Information System) is listed as a modern technique.
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5. Which category of modern control techniques includes the assessment of liquidity, gross profit, and net profit?
Ratio analysis includes measures like gross profit ratio, net profit ratio, and liquidity.
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6. Which type of action might be required if a deviation is discovered to be uncorrectable?
If a deviation is uncorrectable, the action might involve revising the standards set in the first step.
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7. Taking Corrective Action is necessary when deviations:
Corrective action is required when deviations go beyond the acceptable range, especially in important areas.
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8. Providing additional training to employees or assigning additional resources (like overtime) are examples of which step in the controlling process?
Training employees or assigning resources are examples of Taking Corrective Action.
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9. What does the abbreviation PERT stand for in the context of modern control techniques?
PERT stands for Programme Evaluation and Review Technique.
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10. In the controlling process, the comparison of actual performance with standards is easiest when the standards are established in which format?
Comparison of actual performance with standards is easier when standards are quantitative.
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11. A key advantage of Management by Exception (MBE) is that it facilitates:
MBE saves time/effort and facilitates delegation.
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12. Standards can be either quantitative, such as cost or revenue, or qualitative, such as:
Qualitative standards include improving goodwill or customer satisfaction.
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13. Which advantage is common to both Critical Point Control (CPC) and Management by Exception (MBE)?
Both CPC and MBE are advantageous because they save time and effort and focus attention on important areas.
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14. Which step in the controlling process directly reveals the deviation between actual and desired results?
The Comparison of Actual Performance with Standards reveals the deviation.
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15. Which technique of deviation analysis suggests that control should focus attention only on significant deviations that cross the permissible limit?
Management by Exception (MBE) dictates that only significant deviations exceeding the permissible limit should be brought to management’s attention.
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16. Which technique is considered a traditional method of managerial control?
Statistical reports, personal observation, break-even analysis, and budgetary control are listed as Traditional Techniques.
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17. Which technique is classified as a modern method of managerial control?
Return on Investment (ROI) is listed among the Modern Techniques of control.
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18. Which technique is defined as an audit of the efficiency and effectiveness of management functions?
Management audit is listed as a modern technique of controlling.
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19. Which concept helps management verify if the standards are accurate and objective?
Judging accuracy of standards is a benefit of controlling.
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20. Which statement accurately describes how past experience influences the management cycle?
Planning is guided by past experience, and controlling provides information from past experience to improve future planning.
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21. The fourth step of the controlling process involves identifying the exact cause(s) of deviations. Which of the following is listed as a potential cause?
Causes of deviation might include unrealistic standards, defective processes, or inadequacy of resources.
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22. Planning is defined as forward-looking because plans are prepared for the future based on:
Planning is forward-looking because plans are prepared for the future based on forecasts.
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23. When management provides control through computer monitoring, it is primarily aiming for the benefit of:
Control through computer monitoring helps minimize dishonest behaviour, ensuring order and discipline.
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24. The systematic process of measuring progress, highlighting deviations, and initiating corrective action is used primarily for the purpose of:
Controlling is defined as a goal-oriented function aimed at achieving predetermined goals effectively and efficiently.
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25. Deviation analysis is made easier when the standards set in Step 1 are:
Comparison (and thus deviation analysis) is easier when standards are quantitative.
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