Management Control System solved MCQs (Multiple Choice Questions)

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

Unit1 : Introduction To Management Control System

1 Modern managers are:

a. action oriented.

b. able to build a sense of shared values.

c. able to manage change efficiently.

d. all of the above.

2. Planning, organizing, directing and controlling are the:

a. functions of management.

b.goals of management.

c. results of management.

d. all of the above.

3. Coordinating people and human resources to accomplish organizational goals is the process of:

a. planning.

b. directing.

c. management.

d. leadership.

4. Which of the following would be included in the "controlling function" ?

a. measuring results against corporate objectives.

b.explaining routines.

c. setting standards.

d. giving assignments.

5. Specific, short-term statements detailing how to achieve an organization's goals is known as its:

a. vision.

b. mission statement.

c. objectives.

d. operational planning.

6. An outline of the fundamental purpose of an organization is called its:

a. mission statement.

b. objectives.

c. policy.

d. all of the above.

7. Strategic planning is done by:

a. top managers of the firm.

b.middle managers.

c. supervisory managers.

d. non supervisory employees.

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

8. Mr. X is a branch manager for Microsoft. He is:

a. top management.

b. middle management.

c. supervisory management.

d. none of the above.

9. The most effective leader is one who:

a. makes managerial decisions without consulting others

b. works with managers and employees to make decisions

c. has the leadership style most appropriate to the situation and the employee involved.

d. none of the above

10. Empowerment is related to:

a. planning.

b.organizing.

c. directing.

d. controlling.

11. Technical skills are most important for which of the following:

a. first line managers.

b. middle managers.

c. vice president-Production.

d. top managers.

12. Motivation is related to:

a. planning.

b. controlling.

c. leading.

d. tactical decisions.

13. Supervisory management spends most of his/her time:

a. planning and controlling.

b. directing and controlling.

c. planning and organizing.

d. organizing and controlling.

14. ____________ refers to the process of developing detailed, short term strategies about what is the be done,

who is to do it, and how it is to be done.

a. strategic planning

b. tactical planning

c. contingency planning

d. none of the above

15. An example of an effective standard for a control system would be:

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

a. deciding to hire 5 new employees.

b. renting new premises.

c. planning to increase sales of product A from 5,000 to 10,000 per month by December of next year.

d. improving the quality of production.

16. When a manager monitors the work performance of workers in his department to determine if the quality of

their work is 'up to standard', this manager is engaging in which function?

a. Planning

b. Controlling

c. Organising

d. Leading

17. What do you call the understanding of a dominant culture before choosing a suitable control system?

a. Market control

b. Bureaucratic control

c. Clan control

d. People control

18. What is the first step in a control process?

a. Allocate resources

b. Choose key personnel for the task

c. Select a strategy

d. Set standards

19. What is the weakest form of control?

a. Pre-control

b. Simultaneous control

c. Post-control

d. Duel control

20. Improving quality through small, incremental improvements is a characteristic of what type of quality

management system?

a. Just-in-time

b. Six Sigma

c. Total Quality Management

d. Kaizen

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

21. Where was Total Quality Management first developed?

a. USA

b.UK

c. Japan

d. Korea

22. Which of the following are key components of a Total Quality Management system?

a. Individual responsibility, incremental improvement, use of raw data

b. Collective responsibility, continual improvement, use of raw data

c. Group responsibility, staged improvement, knowledge

d. Involves everyone, continual improvement, use of data and knowledge

23. What is premise control based on?

a. Buildings

b. People

c. Resources

d. Assumptions

24. What is the term for the monitoring of events both internal and external to the organisation that affects

strategy?

a. Operational control

b. Strategic surveillance

c. Strategic control

d. Environmental scanning

25. What are the main characteristics of an effective control system?

a. Flexibility, accuracy, timeliness and objectivity

b. Flexibility, measurability, timeliness and objectivity

c. Flexibility, accuracy, relevance and objectivity

d. Flexibility, accuracy, timeliness and relevance

26. Group of interacting, interrelated or interdependent functional elements forms a collective entity called as

a. Management

b. System

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

c. Inventory

d. Standards

27. Elements of Control system are:

a. Detector, assessor, feedback, director

b. Sensor, detector, effector, organizer

c. Detector, assessor, effector, communication network

d. Sensor, selector, detector, assessor

28. Has an efficient characteristic of producing maximum output with minimum input per unit.

a. Information control

b. Management control

c. Project control

d. None of the above

29. There are 4 types of Management Control – Strategic control, operational control, &

a. Profitability control & Annual plan control

b. Accountability control & Profitability control

c. Influencing control & Profitability control

d. Reporting control & Annual plan control

30. Two characterized feature of MCS, Reciprocity & Expansibility were given by:

a. G. W. Dalton

b. P. R. Lawrence

c. Both (a. & (b.

d. None of the above

31. Which of the following is not a type of responsibility center under Management Control Structure?

a. Revenue Centre

b. Profit Centre

c. Investment Centre

d. Debt Centre

32. These are 4 steps in Management planning and control system process:

i. Take corrective action

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

ii .Setting performance standards

iii. Evaluate results and give feedback

iv. Measure & compare actual with planned results.

The correct sequence of these steps is:

a. iv, ii, i, iii

b. ii, iv, iii, i

c. i, ii, iii, iv

d. iv, i, iii, ii

35. Process of Socializing new members to the values, policies & procedures of the organization is called as

a. Indoctrination

b. Motivation

c. Communication

d. Coordination mechanism

36. There are 3 types of business process: Centralized, Decentralized &

a. Matrix form of Business process

b. Organized Business process

c. Complex Business Process

d. None of the above

37. There are generally types of control systems.

a. 3

b. 4

c. 2

d. 6

38.Which of the following are in 10 commandments of Effective control system?

a. Suitability, Flexibility, prompt reading

b. Accountability, relativity, accessibility

c. Flexibility, control, futuristic

d. All of the above

39. A situation when groups & individuals work together for achieving a particular goal can be classified as:

a. Motivation

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

b. Goal congruence

c. Effort

d. Autonomy

40. Management is “the art of getting things done through people" was given by:

a. Simons

b. Mary Parker Fillet

c. Peter Drucker

d. None of the above

41. A good control system should be rather than work- centered.

a. Action centered

b. Management centered

c. Worker centered

d. All of the above

42.Operational control is also referred as

a. Planning control

b. Task control

c. Corrective control

d. Risk control

43.Process whereby top management examines the actual outcomes of its company's effort manually is known as

a. Strategic control

b. Active control

c. Annual plan control

d. Objective control

44. Management Accounting has three major subdivisions: Full cost accounting, Differential accounting &

a. Responsibility accounting

b. Cost benefit accounting

c. Both (a. & (b.

d. None of the above

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

45. Nature of Controlling is closely related to that of

a. Planning

b. Reporting

c. Routing

d. None of the above

46. The sub-units of business are function oriented and do not take any decision at their level in

a. Centralized Business process

b. Decentralized business process

c. Both a & b

d. None of the above

47. According to Chester Barnard, Control is efficient when cost is , morale is & individual dissatisfaction is

minimal.

a. High, minimal

b. Minimal, high

c. High, high

d. Minimal, minimal.

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

Unit 2 : Management Controls In Functional Areas

48. When evaluating and selecting hardware suppliers, many organizations formalize specific requirements by

listing them in a document called an RFP (request for proposal. However, these same organizations do not use an

RFP for selecting software vendors because most organizations purchase software directly from

manufacturers.

a. True

b. False

49. System testing involves testing hardware devices, testing and debugging programs, and testing information-

processing procedures. Programs are deleted using test data that attempt to simulate all conditions that may arise

during processing.

a. True

b. False

50. Your text defines organizational feasibility as how well a existing information system supports the objectives

of an organization’s strategic plan for information systems.

a. True

b. False

51. Your text defines system specifications as the product of the systems design stage. It is used to determine

______________________ for hardware, software, hardware, facilities, personnel, databases, and the user

interface of a proposed information system.

a. Requirements

b. Specification

c. Commissions

d. Donating

52. One way of practicing system thinking is to try to find ____________________ of the system in any situation

you are studying.

a. Systems, beta systems and components

b. Systems, subsystems and compartments

c. Sister, subsystems and compartments

d. Systems, subsystems and components

53.Which of the

following statement is true regarding SDLC activities:

a. In theory, several development activities can occur at the same time, so different parts of a

development project can be at different stages of the development cycle.

b. In actual practice, several development activities cannot occur at the same time, so different parts of a

development project can be at different stages of the development cycle.

c. In actual practice, several development activities can occur at the same time, so different parts of a

development project can be at different stages of the development cycle.

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE–45

Subject: Management Control System Class :T.Y. BBA

Prof . S. B. Potadar www.dacc.edu.in

d. In theory, several development activities can occur at the same time, so different parts of a

development project can be at different stages of the development cycle.

54. Which of the following stage may involve consideration of proposals generated by a business/IT planning

process?

a. System Investment

b. System Investigation

c. System design

d. System implementation

55. Which of the following is the system component closest to the business end users and the one they most likely

help design.

a. User Interactive Design

b. User interface design

c. Specification design

d. None of the above

56. The implementation process for newly designed information systems involves a variety of acquisition, testing,

documentation, installation, and conversion activities. It also involves the ________________ of end users in the

operation and use of the new information system.

a. Firing

b. Raining

c. Negotiating

d. Training

57. ______________ is one of the major forms of system conversion, where installation can be accomplished by a

direct cutover to a newly developed system.

a. Plunge conversion

b. Parallel conversion

c. Phased conversion

d. Pilot conversion

58. Which of the following is a major source of information system services in the computer industry?

a. System Interpreters

b. Peripheral manufacturers

c. Documentation consultants.

d. System integrators.

59. The feasibility study is a ______________________ study where the information needs of perspective users

and the resource requirements, costs, benefits and feasibility of a proposed project are determined.

a. Secondary

b. Preliminary

c. Modified

d. Late night

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Management Control System solved MCQs

Management Control System solved MCQs

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