A _________is an aggregate of machines and people that work toward a common objective
Company
Body
System
Nation
In a _________, data/information is typically fed back to managers of the various system
phases.
Subject
MCS
Computer
Company
Every control system has at least four elements, viz. a detector or sensor, an assessor, an effector
and a communication network
TRUE
FALSE
Management control system includes both Financial and __________performance measures.
Fake
Numerical
Real
Non-financial
_______control calls management attention to organizational developments.
Interactive
Poor
Non-performing
Negative
Transfer price means a price at which a unit or branch or subsidiary company of an entity
located in one country provides goods or services to a unit or branches or subsidiary
company of the _____ located in other country.
Country
Different entity
Region
Same entity
Transfer prices affect ______of different units or subsidiaries but it does not have an impact on
the overall profitability of an entity.
Loss
Profitability
Company
Sale
Taxation authorities in various countries try to maximize tax revenue and hence carefully _____
the transfer prices charged.
Assess
Increase
Ignore
Remove
Targets must be set which are ____ as well as non-monetary in nature.
Material
Virtual
Monetary
Wrong
Budget is a document which details out estimated actions of company in future.
TRUE
FALSE
Responsibility centres in which output is measured in monetary terms are termed as-
Revenue Centres
Expense centre
Profit Centre
Investment centre
In what type of responsibility centre does the control system measure the monetary value?
Expense centre
Profit centre
Cost centre
Investment centre
Which one is a special type of profit centre in which, apart from profit, the
management’s attention is also focused on the assets employed in earning the profit?
Investment centre
Cost centre
Profit centre
Expense centre
Which of the following is considered to be third line of influence that top managers have over
profit centres?
Responsibility
Rewards
Cost
Motivation
Which centres focus on cost and quality variables, do not produce revenues, and have budgets
only for the inputs?
Revenue centres
Investment centres
Expense centres
Profit centres
ZBB stands for:
Zero base block
Zeal base budget
Zero base budget
Zero bise budget
____________ implements the organization’s goals and strategies.
Strategic plan
Plan
Goal
Budget
Budget is a document which details out estimated actions of company in future.
FALSE
TRUE
Budgets which can be modified as per level of productions are called as:
fixed budget
flexible budget
performance budget
ZBB
Role of an auditor does not include:
Making salary
Checking that financial reports
Keeping accurate accounts
Ensuring that assets are protected
_________ is the process of deciding the goals of the organization and the strategies.
None of these
Implementing Strategies
Development Strategies
Strategic formulation
____________ considerations is less important in the strategic formulation process.
Behavioural
Organisational
All of these
Financial
Which control style is more participate and attempts to capitalize upon the motivation of the
subordinate?
Blind Control
External control style
Internal control style
Mixed control style
Which of the following achieves unity through diversity by the use of communications and
coordination in pursuit of short term objectives and long term goals?
Goal
Control systems
Planning
Motivation
Which of the following types of organizations depends on the values and beliefs of
the organization to steer performance?
Bureaucracies
Market based
Mixed
Clan
The linkages with suppliers should be managed so that both the firm and its supplier may
benefit in lowering costs, increasing value or both.
TRUE
FALSE
Reducing the number of separate parts and increasing their ease of manufacture might increase
efficiency of the design portion of the value chain
TRUE
FALSE
The analysis is done by the marketing, production and other functional executives at
headquarters through discussions.
FALSE
TRUE
Comparisons with the performance of other companies or with standard costs for certain types
of activities may indicate opportunities for improvement.
FALSE
TRUE
Organisations are not affected by any legal policies.
FALSE
TRUE