MGT Test 2 Flashcards

Terms Definitions
In evaluating high-tech projects,
a.   only tangible benefits should be considered.
b.   only intangible benefits should be considered.
c.   both tangible and intangible benefits should be considered.
d.   neither tangible nor intangible benef
C
Andersen Company required production for June is 66,000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 150,000 and 165,000 pounds, respe
D
Sonic Corporation’s variance report for the purchasing department reports 500 units of material A purchased and 1,200 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $
C
Capital expenditure proposals are initially screened by the
a.   board of directors.
b.   executive committee.
c.   capital budgeting committee.
d.   stockholders.
C
The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing
a.   budgetedoverhead costs by an expected standard activity index.
b.   actualoverhead costs by an expected standard activity index.
c. 
A
Unfavorable materials price and quantity variances are generally the responsibility of the
                          Price                                       Quantity
a.        Pur
B
Budgeted overhead for Mengotti Company at normal capacity of 30,000 direct labor hours is $3 per hour variable and $2 per hour fixed.  In May, $155,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed.  The overhe
B
A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n)
a.   ideal standard.
b.   loose standard.
c.   tight standard.
d.   normal standard.
D
An overhead volume variance is calculated as the difference between normal capacity hours and standard hours allowed
a.   times the total predetermined overhead rate.
b.   times the predetermined variable overhead rate.
c.   times the predetermin
C
The standard direct materials quantity does not include allowances for
a.   unavoidable waste.
b.   normal spoilage.
c.   unexpected spoilage.
d.   all of the above are included.
C
The matrix approach to variance analysis
a.   will yield slightly different variances than the formula approach.
b.   is more accurate than the formula approach.
c.   does not separate the price and quantity variance calculations.
d.   provide
D
Labor efficiency is measured by the
a.   materials quantity variance.
b.   total labor variance.
c.   labor quantity variance.
d.   labor rate variance.
C
A department has budgeted monthly manufacturing overhead cost of $180,000 plus $3 per direct labor hour. If a flexible budget report reflects $348,000 for total budgeted manu-facturing cost for the month, the actual level of activity achieved during the m
B
Performance reports for cost centers compare actual
a.   total costs with static budget data.
b.   total costs with flexible budget data.
c.   controllable costs with static budget data.
d.   controllable costs with flexible budget data.
D
A budget period should be
a.   monthly.
b.   for a year or more.
c.   long-term.
d.   long enough to provide an obtainable goal under normal business conditions.
D
If the required direct materials purchases are 18,000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what ar
C
The production budget shows expected unit sales of 32,000. Beginning finished goods units are 5,600. Required production units are 33,600. What are the desired ending finished goods units?
a.   4,000
b.   5,600
c.   6,400
d.   7,200
D
The budget itself and the administration of the budget are entirely accounting responsibilities. (T/F)
False
Troyer Company reported the following information for 2011:
                                                      October                 November              December
Bu
B
The following credit sales are budgeted by Peckman Company:
January                                           $136,000
February                                          2
C
What does the controllable variance measure?
a.   Whether a company incurred more or less fixed overhead costs compared to the amount of overhead applied
b.   Whether a company incurred more or less overhead costs than allowed
c.   The efficiency
B
The following information was taken from the annual manufacturing overhead cost budget of Coen Company.
                                Variable manufacturing overhead costs                         
A
Neufeld Company makes and sells widgets. The company is in the process of preparing its Selling and Administrative Expense Budget for the month. The following budget data are available:
Item                                
A
Beginning cash balance plus total receipts
a.   equals ending cash balance.
b.   must equal total disbursements.
c.   equals total available cash.
d.   is the excess of available cash over disbursements.
C
Standard costs may be used by
a.   universities.
b.   governmental agencies.
c.   charitable organizations.
d.   all of these.
D
It is possible that a company's financial statements may report inventories at
a.   budgeted costs.
b.   standard costs.
c.   both budgeted and standard costs.
d.   none of these.
B
A company is considering purchasing a machine that costs $320,000 and is estimated to have no salvage value at the end of its 8-year useful life.  If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses excl
C
Which one of the following sections would not appear on a cash budget?
a.   Cash receipts
b.   Financing
c.   Investing
d.   Cash disbursements
C
In the direct materials budget, the quantity of direct materials to be purchased is computed by adding direct materials required for production to
a.   desired ending direct materials.
b.   beginning direct materials.
c.   desired ending direct m
C
The Western Division of Guinn Corp. had an ROI of 25% when sales were $2 million and controllable margin was $400,000.  What were the average operating assets?
a.   $100,000
b.   $500,000
c.   $1,600,000
d.   $8,000
C
The total overhead variance is the difference between actual overhead costs and overhead costs applied to work done. (T/F)
True
In using the internal rate of return method, the internal rate of return factor was 4.0 and the equal annual cash inflows were $12,000. The initial investment in the project must have been
a.   $12,000.
b.   $3,000.
c.   $48,000.
d.   $24,000.
C
If budgets are to be effective, there must be
a.   a history of successful operations.
b.   independent verification of budget goals.
c.   an organizational structure with clearly defined lines of authority and responsibility.
d.   excess plan
C
Which of the following is done to improve the reliability of the sales forecast?
a.   Employ financial planning models
b.   Lengthen the planning horizon to more than a year
c.   Rely solely on outside consultants
d.   Use the sales forecasts
A
Grapevine
the informal organizational communication network, acts as both a filter and feedback mechanism, pinpoints issues employees feel are important
Adam Smith
Division of labor/specialized tasks
4th AmmendmentCh5
Illegal Search and Seizure
International commerce
Exclusive power: only federal government may regulate it
Seasonality
short-term, regular variations of the data that's associated with the calander year
Globalization- 


 
The dual trends of (a.) Increasing international exchange of goods, money, information, people, and ideas and (b.) increasing similarity among countries of laws, rules, norms, values, and income levels
Employee engagement
employees being connected to, satisfied with, and enthusiastic about their jobs
vaildation
process of deterining the predictive value of info
feedback
worker gets direct information about how well the job is done
Mclelland's Needs theory
Also investigated needs for affiliatian and powerNeed for achievement, need for affiliation, need for power
vision acts like a _____- attracting, challenging, and uniting people
magnet
database
electronic storage file where info is kept
marketing intermediares
organizations that assist in moving goods and services from producers to industrial and consumer users

---   No clear strategic direction
---   Obsolete facilities
---   Subpar profitability
---   Lack of managerial depth and talent
---   Weak market image
---   Too narrow a product line
a) Potential Internal STRENGTHS
b) Potential Ex

Potential Internal WEAKNESSES
Delegation
is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.
Voir DireCh4
Jury Trial - Questioning of perspective jurors by court and attorneys with the goal of having a fair and impartial jury
Chief executive officer and Chief Operating Officer
CEO COO
Maslows Hierarchy
Physical, safety, social, esteem, self actualization

psses
disparate impact
plaintiffs must show that employer's practices had a disparate impact on member of protected group by showing that the employment procedures had a disproportionately negative effect on members of protected group
Trait theory
Leadership traits were not innate, but could be developed through experience and learningLeader trait – physical or personality characteristic that can be used to differentiate leaders from followers
differentiation strategy (#6)
focus on effectiveness; high profit margins, but low amount of products
limited partnership
partnership with one or more general partners and one or more limited partners
economics
study of how society chooses to employ resources to produce goods and services and distribute them for  consumption among various competing groupos and individuals

---   Entry of lower-cost foreign competitors
---   Rising sales of substitute products
---   Slower market growth
---   Costly regulatory requirements
---   Vulnerability to recession and business cycles
---   Changing buyer needs and

Potential External THREATS
need theories
theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs
Decision Making
-the process by which people respond to oppurtunities and threats by choosing goals, analyzing options, and selecting courses of action
action plan
a plan used to operationalize any other kind of plan.
Executive Order 11246 covers
Covered organizations receiving more than $10,000 from the federal government must take affirmative action, and those with contracts exceeding $50,000 must develop a written affirmative action plan for each of their establishments.
work desigh, job analysis, training and development, recruiting, compensation, team-building, performance, management and appraisal, worker health and safety issues
responsibilities of HRM
universal ethics
actions are take out of duty and obligation to a purely moral ideal rather than based on the needs of the situation, since the universal principles are seen to apply to everyone, everywhere, all the time.
•Legitimate power
–The extent to which a manager can use subordinates’ internalized values or beliefs that the boss has the “right of command” to control their behavior
statistical process control (SPC)
process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph.  Any variances from quality standards are recognized and can be corrected if beyond the set standards

When a company is so open to other companies that electronic information is shared as if the companies were one.
a) Transparency
b) Form Utility
c) Virtual Corpoartion
d) Computer-Aided Design (CAD)
Transparency
Specialty CourtsCh3
Trial Court - Created by Congress with limited jurisdiction
reaction plan
a plan developed to react to an unforeseen circumstance.
Due Process 542
Substantive: focuses on the purpose or rationale of the work rules to ensure that an employee has not been arbitrarily disciplined or discharged.
Procedural: Covered in labor agreements and includes the following:
1. Rules must exist for this procedure
2. Applicable and equitable to all employees
3. Includes the right to be represented
4. Right to a fair and impartial fact-finding process and hearing
5. Free from retaliation
6. Right to as much privacy as is practicable.
Constitutional Law
Body of law derived from the US constitution and the constitutions of the various states
•Expanding the zone of indifference

–Management needs to recognize the current zone of indifference and systematically move to expand it
–Management should show how empowerment will benefit people and provide the needed inducement
 

 
Transaction Cost Perspective- 


A perspective that the choice of a transaction’s governance structure is influenced by transaction costs associated with each choice
Planning, organizing, leading, and controlling
What are The four management functions
Natural Law
an unjust law is no law at all and need not to be obeyed.
just in time (JIT) inventory control
production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line
A measures of how many weeks' worth of inventory is in the system at a particular point in time.
Weeks of Supply
Surplus/Shortage of Labor - Ways to fill vacancies
Downsizing: planned elimination of large numbers of personnel with the goal of enhancing the organization’s competitiveness.Early-retirement programs: programs that encourage older workers to leave voluntarily.Phased retirement programs What are the pros and cons of these strategies:Downsizing – short term profits often turn into longer term losses because people with important knowledge and skills leave. Often companies end up rehiring employees sometimes at a higher pay rate. Survivors have low morale and don’t see a future with the company. Society suffers when families suffer due to downsizing.Early retirement programs:Early retirement can be effective, especially if lower performing older workers retire. However sometimes the plan works so well that too many people retire leaving a need for talented experienced workers.Organizations have moved to a phased retirement program so that they can ease employees into retirement and still have their experience to draw from.
Extraversion, one of the "Big Five" dimensions, is:
the degree to which individuals are gregarious, assertive, and sociable versus being reserved, timid, and quiet.
18. Why is order of observation important in process control?
The idea of process control is to monitor the number of samplesoutside the LCL and UCL in a series of observations. If we get aconsecutive series of plots outside the limits or all below/above thecentral line, the process needs to be investigated for cause ofsustained poor performance. Similarly, if a series of plots aretrending in one direction, it needs to be investigated for cause ofprogressive change. Thus consecutive observation points havesignificance in process control.
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Term:
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