1.
The process of ascertaining whether organizational objectives have been achieved; if not, why
not; and determining what activities should then be taken to achieve objectives better in the
future. (Identification) Answer: Control
2. When controlling is properly implemented, it will help the organization achieve its goal
_____.
A. In the most efficient and effective manner possible.
B. By ensuring that expectations are always met at scheduled dates.
C. Through the establishment of objectives and standards.
D. By reducing the cost of producing goods and services.
3. How many steps does the control process consist of?
A. 4
B. 3
C. 7
D. 5
4. What is the first step in the control process?
A. Establishing performance objectives and standards.
B. Taking necessary action based on the results of the comparisons.
C. Measuring actual performance.
D. Comparing actual performance to objectives and standards.
5. Worker attendance performance objectives are expressed in which terms?
A. in terms of rate of absences.
B. in quantity or monetary terms.
C. in number of accidents for given periods.
D. in quality specifications.
After the performance objectives and standards are established, what is the next action in the
control process?
A. measuring actual performance.
B. comparing actual performance to objectives and standards.
C. taking necessary action based on the results of the comparisons.
D. designing methods for measuring performance.
7. The purpose of comparing actual performance with the desired result is what?
A. to provide management with the opportunity to take corrective action when
necessary.
B. to determine what activities should then be taken to achieve objectives better in the future.
C. to use more equipment.
D. to acquire more market share.
8. If in the illustration cited about the management of the construction firm found out that only
15 kilometers were finished after two months, what is one action that may be undertaken?
A. hire additional personnel.
B. use less equipment.
C. increase the standard performance.
D. reduce the annual growth rate.
9. Which financial statement shows a company’s assets, liabilities, and capital at a specific point
in time?
A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Statement of Retained Earnings
10. What is the main purpose of financial ratio analysis in engineering management?
A. To prepare tax reports
B. To compare salaries across departments
C. To control activities and identify needed corrective actions
D. To eliminate financial statements
11. Which ratio measures a company’s ability to meet its short-term obligations using current
assets?
A. Debt to Total Assets Ratio
B. Current Ratio
C. Profit Margin Ratio
D. Fixed Asset Turnover
12. The Acid-Test Ratio differs from the Current Ratio because it:
A. Includes fixed assets
B. Excludes inventories
C. Measures profitability
D. Focuses on long-term debt
13. Which efficiency ratio measures how many times inventory is sold or used during a year?
A. Fixed Asset Turnover
B. Return on Assets
C. Inventory Turnover Ratio
D. Times Interest Earned Ratio
14. What does the Debt to Total Assets Ratio indicate?
A. The company’s sales efficiency
B. The firm’s profit per peso of sales
C. How much of the company’s assets are financed by debt
D. The company’s ability to pay interest
15. What is the main purpose of a comprehensive internal audit?
A. To increase employee workload
B. To evaluate efficiency and effectiveness and prevent major problems
C. To replace external auditors
D. To focus only on financial profits
16. A construction company requires all new site engineers to undergo a rigorous safety
certification process before they are allowed to manage a project. Which type of control does this
represent?
A. Concurrent Control
B. Feedforward Control
C. Feedback Control
D. Strategic Control
17. An IT manager notices a server lag on a live dashboard and immediately redirects
traffic to a backup server to prevent a system crash. Which type of control does the
manager apply in this scenario?
A. Concurrent Control
B. Feedforward Control
C. Feedback Control
D. Strategic Control
18. Which component of an organizational control system acts as the "Weekly Expense Tracker,"
providing the short-term financial standards for a manager to follow?
A. Long-Range Financial Plan
B. Strategic Plan
C. Operating Budget
D. Statistical Reports
19. At the end of the fiscal year, a company reviews its "Quality Control Rejects" report to see if
the new machinery reduced waste. Why is this considered Feedback Control?
A. Because it uses historical data to evaluate past performance.
B. Because it happens while the machines are still running.
C. Because it prevents the waste from happening in the first place.
D. Because it is a step-by-step procedure for fixing the machines.
20. A supervisor uses a "Power Consumption Report" to see which department is wasting
electricity during off-hours. This tool is an example of which component?
A. Policies and Procedures
B. Performance Appraisal
C. Statistical Reports
D. Strategic Plan
21. Which analogy best describes Concurrent Control because it involves staying "on
course" through constant, live observation?
A. Concurrent Control
B. Feedforward Control
C. Feedback Control
D. Strategic Control
22. "The customer's needs must always come first" is a general guideline used to steer employee
decision-making. This is an example of a:
A. Procedure
B. Statistical Report
C. Policy
D. Long-Range Financial Plan