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

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Question 51

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

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

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

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Question 52

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

A) True
B) False

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Question 53

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

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.

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

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

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

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

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

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

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

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

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

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 _____.

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

One way to improve productivity is to offer less flextime.

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

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

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

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