Ch 16 Flashcards
(27 cards)
Any process that directs the activities of individuals toward the achievement of organizational goals
Control
The use of rules, regulations, and authority to guide performance
Bureaucratic control
Control based on the use of pricing mechanism and economic information to regulate activities within organizations
Market control
Control based on the shared norms, values, goals, and trust among group members
Clan control
Expected performance for a given goal
Standard
Managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard
Principle of exception
Control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly
Feedforward control
The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed
Concurrent control
Control that focuses on the use of information about previous results to correct deviations from the acceptable standard
Feedback control
An evaluation of the effectiveness and efficiency of various systems within an organization
Management audit
An evaluation conducted by one organization on another
External audit
Periodic assessment of a company’s own planning, organizing, leading, and controlling processes
Internal audit
A process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences
Budgeting
Method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities
Activity-based costing
Report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity
Balance sheet
An itemized financial statement of the income and expenses of a company’s operations
Profit and loss statement
The values of the various items the corporation owns
Assets
The amounts of a corporation owes to various creditors
Liabilities
The amount accruing to the corporation’s owners
Stockholders’ equity
What is the current ratio?
Current assets/current liabilities
A liquidity ratio that indicates the extent to which short term assets can decline and still be adequate to pay short-term liabilities
Current ratio
A leverage ratio that indicates the company’s ability to meet its long-term financial obligations
Debt-equity ratio
What is the formula for the debt-equity ratio?
Total Liabilities / shareholders equity
A ratio of profit to capital used, or a rate of return from capital
Return on Investments (ROI)
