CHAPTER 9

CONTROLLING
Questionnaire
1. It refers to the “process of ascertaining whether organizational objectives have been
achieved and determining what activities should then be taken to achieve objectives
better in the future.” (Controlling)
2. One step in the control process that refers towhen actual performance has been
determined, this will be compared with what the organization seeks to achieve. Actual
production output, for instance, will be compared with the target output. (Comparing
Actual Performance to Objectives and Standards)
3. Last step in the control process where comparing actual performance with the desired
result was done. (Taking Necessary Action)
4. Objectives or Standards which are expressed in quantity or quality. (Production Targets)
5. Objectives or Standards which is expressed in number of accidents for given periods.
(Safety Records)
6. Objectives or Standards which are expressed in terms of rate of absences. (Worker
Attendance)
7. Objectives or Standards which are expressed in quantity or monetary terms. (Sales
Targets)
8. Objectives or Standards which are expressed in quantity or monetary terms for given
periods. (Supplies Used)
9. This is a group of ratios designed to asses the balance of financing obtained through debt
and equity sources. (Financial Leverage Ratio)
10. Itis the process of evaluating businesses, projects, budgets, and other finance-related
transactions to determine their performance and suitability. (. Financial Analysis)
11. These ratios assess the ability of a company to meet its current obligations. (Liquidity
Ratio)
12. These ratios show how effectively certain assets or liabilities are being used in the
production of goods and services. (Efficiency Ratios)
13. It is a more elaborated approach in controlling activities. The account appearing in
financial statements is paired with other company’s financial statements with a required
norm to constitute a ratio. (Financial Ratio Analysis)
14. This ratio measures how much net income a company can generate in relation to its
assets, equity and sales. (Profitability Ratio)
15. These allow executives to track how well the organization is performing, identify areas
of concern, and then take action to address the concerns. (Organizational Control
System)
16. It provides the basic control mechanism for the organization. (Strategic Plan)
17. It recommends a direction for financial activities. (Long-Range Financial Plan)
18. It indicates the expenditures, revenues, or profits planned for some future period
regarding operations. (Operating Budget)
19. It measures employee performance. Also, it functions as effective checks on new
policies and programs. (Performance Appraisal)
20. These pertain to those that contain data on various developments within the firm.
(Statistical Reports)