Chapter 9: Controlling Flashcards
The process of ascertaining whether organizational objectives have been achieved; if not, why not; and determining what activities should then be taken to achieve objectives better in the future
Controlling
Are expressed in quantity or monetary terms
Sales Targets
Are expressed in quantity or quality
Production Targets
Are expressed in terms of rate of absences
Worker Attendance
Is expressed in number of accidents for given periods
Safety Record
Are expressed in quantity or monetary terms for given periods
Supplies Used
Type of control measure undertaken when management anticipates problems and prevents their occurence
Feedforward Control
Type of control measure undertaken when operations are already ongoing and activities to detect variances are made
Concurrent Control
Type of control measure undertaken when information is gathered about a completed activity, and in order that evaluation and steps for improvement are derived
Feedback Control
Provides the basic control mechanism for the organization
Strategic Plan
Recommends a direction for financial activities
Financial Plan
Indicates the expenditures, revenues, or profits planned for some future period regarding operations
Operating Budget
Measure employee performance
Performance Appraisal
Pertain to those that contain data on various developments within the firm
Statistical Reports
The framework within which the objectives must be pursued
Policies
A plan that describes the exact series of actions to be taken in a given situation
Procedure
Contains information about the company’s gross income, expenses, and profits.
Income Statement
Is a more elaborate approach used in controlling activities. Under this method, one account appearing in the financial statement is paired with another to constitute a ratio
Financial Ratio Analysis
These ratios assess the ability of a company to meet its current obligations
Liquidity Ratios
These shows the extent to which current assets of the company can cover its current liabilities
Current Ratio
This is a measure of the firm’s ability to pay off short-term obligations with the use of current assets and without relying on the sale of inventories
Acid-test Ratio
These ratios show how effectively certain assets or liabilities are being used in the production of goods and services
Efficiency Ratios
This ratio measures the number of times an inventory is turned over each year
Inventory Turnover Ratio
This ratio is used to measure utilization of the company’s investment in its fixed assets, such as its plant and equipment
Fixed Asset Turnover
