1. It involves the regulation of ongoing activities that are part of transformation process to ensure that they conform to organizational standards. a. Timely control b. Feedback Control c. Feed forward Control d. Concurrent Control

4. ___________________ exists when the major functions of an organization are controlled by top management. a. Optimization b. Decentralization c. Centralization d. An unfavorable overhead variance

6. The formal management control system includes: a. performance measures b. incentive plans c. mutual commitments d. Both A and C are correct.

7. One of the reasons for decentralization is more timely response. This means

a. central management can be free to focus on strategic planning. b. allowing an organization to determine each divisions contribution to profit and expose each division to market forces. c. local management both makes and implements decisions. d. lower-level managers being more in contact with immediate operating conditions.

8. When comparing performance report information for top management with that of lower-level management, (CMA adapted)

a. lower-level management reports are typically for longer time periods. b. top management reports are usually not of the exception type but present a complete analysis of all variances. c. lower-level management reports are likely to contain more quantitative data and less financial data. d. top management reports are more detailed. e. top management reports show control over fewer costs.