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TQM assumes that continuous improvement must be an everyday matter and that no improvement is too small.

A) True
B) False

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One way to improve productivity is to offer less flextime.

A) True
B) False

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Debt management ratios indicate the degree to which an organization can meet its short-term financial obligations.

A) True
B) False

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When performance exceeds the standards set in the control systems,managers should give rewards.

A) True
B) False

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A markdown on certain grocery store items that results in a rush of customer demand for those products is an example of the use of control systems to detect opportunities,such as reducing prices for similar items.

A) True
B) False

Correct Answer

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Standards are best measured when they are _____.


A) broad
B) quantifiable
C) narrow
D) efficient
E) ethical

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

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Recent productivity growth is likely the result of organizations' huge investment in information technology like computers,the Internet,other telecommunications advances,and computer-guided production line improvements.

A) True
B) False

Correct Answer

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Traditional financial measures improve customer satisfaction,quality,and employee motivation.

A) True
B) False

Correct Answer

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A principle of Deming management is that quality should be aimed at meeting the needs and expectations of the ultimate user.

A) True
B) False

Correct Answer

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Some managers use _____,which provides four indicators with which organizations can set goals and measure performance.


A) a strategic map
B) the balanced scorecard
C) measurement management
D) a strategic scorecard
E) evidence-based management

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

Correct Answer

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Supervisors are responsible for operational control.

A) True
B) False

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Internal process is one of the four indicators used in the balanced scorecard.

A) True
B) False

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If a manager decreases the efficiency of labor and makes no improvements to the efficiency of capital,an increase in productivity will result.

A) True
B) False

Correct Answer

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Undue emphasis on reports can lead even to falsification of data.

A) True
B) False

Correct Answer

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One characteristic of incremental budgeting is that it _____.


A) allows comparison using various units,like labor hours and dollars
B) is flexible toward changing environmental demands
C) allows easy comparison of different departments doing different activities
D) locks managers into stable spending arrangements
E) requires more time from managers than zero-based budgeting

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

Correct Answer

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Twice daily,factory workers at Mountain CopperWorks select random samples from the production runs and test them for quality,rejecting runs if too many samples fall outside a standard range of acceptability.These workers are engaged in statistical process control.

A) True
B) False

Correct Answer

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A(n) ______ budget projects what an organization will create in goods and services,what financial resources are needed,and what income is expected.


A) expense
B) revenue
C) operating
D) cash
E) cash flow

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

Correct Answer

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Control systems cannot help managers anticipate,monitor,and react to environmental changes and uncertainties.

A) True
B) False

Correct Answer

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Controls allow top management to decentralize decision-making at lower levels within the organization.

A) True
B) False

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The three levels of control are strategic,tactical,and corrective.

A) True
B) False

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