Unit1 : Introduction To Management Control System

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.


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.


7. Strategic planning is done by:

a. top managers of the firm.

b.middle managers.

c. supervisory managers.

d. non supervisory employees.




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:




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




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




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.


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




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


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




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


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.





45. Nature of Controlling is closely related to that of

a. Planning

b. Reporting

c. Routing


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


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.




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


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





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


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


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




60. All of the following are examples of operational feasibility, except?

a. Cost rating

b. Management support

c. Acceptance of employee

d. Cost savings

61. “If the software for a new business system is too difficult to use, customers or employees may make too many

errors and avoid using it” – this example applies on the failure of which of the following kind of feasibility?

a. Economic

b. Organizational

c. Operational

d. Technical

62. All of the following are the goals of feasibility studies except:

a. To evaluate alternative system solutions

b. To evaluate the cost of design study

c. To evaluate the cost of feasibility study

d. To propose the most desirable business application for development.

63. _______________ is on how well a proposed system supports the strategic business priorities of the

organization.

a. Technical

b. Operational

c. Organizational

d. Economic

64. Which of the following is an example of intangible benefit?

a. Elimination of unnecessary documents

b. Elimination of burdensome job tasks

c. Development of IT based products

d. Reduction in inventory carrying cost

65. The maintenance activity includes which of the following review process to ensure that newly implemented

systems meet the systems development objectives established for them?

a. Pre-implementation

b. Postmortem

c. Cost- implementation

d. Post- implementation

66. Joint Application Design (JAD. session is one the method of collecting training requirements for a

implemented system.

a. True




b. False

67. When training employees on a computerized application, the training may involve activities such as data entry,

or it may involve all aspects of the proper use of a new system.

a. True

b. False




Unit 3 : Computers Systems

68. Which of the following level of managers develop short- and medium-range plans, schedules, and budgets

and specify the policies, procedures, and business objectives for their sub-units of the company?

a. Strategic

b. Tactical

c. Operational

d. Front line

69. Information that is outdated, inaccurate, or hard to understand would be very meaningful, useful, or

valuable to you or other business professionals.

a. True

b. False

70. Information has three dimensions. There are

a. Time, consent, and form

b. Time, content, and form

c. Cost, content, and form

d. Time, content, and Value

68. According to your text book, the emerging class of applications focuses on personalized decision support,

modeling, information retrieval, data warehousing, what-if scenarios, and reporting is called:

a. Decision Support Trends

b. Decision Support History

c. Decision Support models

d. Decision Support class

1. The growth of corporate intranets, extranets, as well as the web, has accelerated the development and use

of “executive class” information delivery and decision support software tools by lower levels of

management and by individuals and teams of business professionals. This dramatic expansion has opened

the door to the use of which of the following tool?

a. Business intelligence (BI)

b. Business Knowledge (BK)

c. Business Ideas (BI)

d. d. Busyness Intelligent (BI)

2. According to your textbook, the Decision support systems use all of the following EXCEPT:

a. Analytical models,

b. Specialized databases

c. Online Transaction processing

d. A decision maker’s own insights and judgments, and an interactive, computer-based

3. ___________________________ were the original type of information system developed to support

managerial decision making. An MIS produces information.




a. Management information systems

b. Decision Support systems

c. Management Tracking Systems

d. Strategic Information System

4. Which of the following involves analyzing complex relationships among thousands or even millions of

data items stored in data marts, data warehouses, and other multidimensional databases to discover

patterns, trends, and exception conditions?

a. OLTP

b. OLAP

c. OISE

d. OLALA

5. _________________ represent complex data using interactive three- dimensional graphical forms such as

charts, graphs, and maps.

a. Data Entry Systems

b. Data Analysis systems

c. Database Management

d. Data visualization systems

6. Another name of goal seeking analysis is:

a. How to

b. How can

c. Why not

d. What’s up

7. Decision support system involves all of the following types of analytical modeling activities except?

a. what-if analysis

b. Sensitivity analysis

c. Goal-seeking analysis

d. Heuristics

8. In which of the following types of analysis, the value of only one variable is changed repeatedly, and the

resulting changes on other variables are observed.

a. what-if analysis

b. Sensitivity analysis



9. In which of the following types of analysis, the goal is to find the optimum value for one or more target

variables, given certain constraints?

a. what-if analysis

b. Optimization






10. _____________________ is one of the most common and useful types of data mining for marketing. The

purpose of market basket analysis is to determine what products customers purchase together with other

products.

a. Market Box Analysis

b. Market of Business Administration

c. Market Bazar Analysis

d. Marketing Information System

11. The first goal of executive information systems is to provide top executives with immediate and easy

access to information about a firm’s _______________, that is, key factors that are critical to accomplishing an

organization’s strategic objectives.

a. Critical Success Factors (CSFs)

b. Critical Accomplishing Factors (CAFs)

c. Critical executive system (CECs)


12. “A user checks his email, looks up the current company stock price, checks his available vacation days,

and receives an order from a customer—all from the browser on his desktop. That is the next—generation

intranet, also known as:

a. Corporate or enterprise information system

b. corporate or enterprise information portal

c. Corporate or enterprise homepage


13. In many organizations, hypermedia databases at corporate intranet websites have become the knowledge

bases for storage and dissemination of business knowledge.

a. True

b. False

14. _____________ is a field of science and technology based on disciplines such as computer science,

biology, psychology, linguistics, mathematics, and engineering.

a. Natural intelligence

b. Artificial intelligence

c. Articulate Intelligence


15. __________________ involves using multi-sensory human- computer interfaces that enable human users

to experience computer-simulated objects, spaces, activities, and “worlds” as if they actually exist.

a. Virtual office

b. Virtual reality

c. Real reality

d. Reality




16. The components of an expert system include a _____________________________ that perform inferences

on the knowledge in the knowledge base and communicate answers to a user’s questions.

a. Database and software modules

b. knowledge base and software modules

c. Communication base and software modules

d. knowledge base and interactive device




Unit 4 : Management Control Of Projects

106. The basic nature of a project is a/an _____ one.

a. permanent

b. temporary

c. A. or B.

d. Both A. and B.

107. A process that involves continuously improving and detailing a plan as more detail become available is

termed as

a. project analysis

b. project enhancing

c. progressive deliberation

d. progressive elaboration

108. A program is usually a group of

a. plans

b. people and work

c. related projects

d. unrelated projects

109. Which from the following statement(s) is/are NOT true?

I. Projects have defined objectives

II. Programs have a larger scope than projects

III. The projects and programs in a portfolio must be directly related

a. I only

b. II only

c. III only

d. II and III only

110. Projects management is divided in _____ process groups.

a. 5

b. 7

c. 9

d. 11

111. A ____ is a set of activities which are networked in an order and aimed towards achieving the goals of a

project.




a. Project

b. Process

c. Project management

d. Project cycle

112. Resources refers to

a. Manpower

b. Machinery

c. Materials

d. All of the above

113.Developing a technology is an example of

a. Process

b. Project

c. Scope

d. All of the above

114. The project life cycle consists of

a. Understanding the scope of the project

b. Objectives of the project

c. Formulation and planning various activities

d. All of the above

115. Following is(are) the responsibility(ies) of the project manager.

a. Budgeting and cost control

b. Allocating resources

c. Tracking project expenditure

d. All of the above

116.Following are the phases of Project Management Life Cycle. Arrange them in correct order

Design, 2. Marketing, 3. Analysis and evaluation, 4. Inspection, testing and delivery

a. 3-2-1-4

b. 1-2-3-4

c. 2-3-1-4

d. 4-3-2-1

117. Design phase consist of




a. Input received

b. Output received

c. Both A. and B.


118. Project performance consists of

a. Time

b. Cost

c. Quality

d. All of the above

119Five dimensions that must be managed on a project

a. Constraint, Quality, Cost, Schedule, Staff

b. Features, Quality, Cost, Schedule, Staff

c. Features, priority, Cost, Schedule, Staff

d. Features, Quality, Cost, Schedule, customer

120. Resorce requirement in project becomes constant while the project is in its _____ progress stage.

a. 40 to 55%

b. B.55 to 70%

a. 70 to 80%

b. 80 to 95%

121. The probability of completing the project can be estimated based upon the ____ .

a. Uniform distribution curve

b. Normal distribution curve.

c. U-shaped distribution curve


122. In the initial stage of the project the probability of completing the project is ___ .

a. Zero

b. High

c. Low

d. Any of the above

123.The entire process of a project may be considered to be made up on number of sub process placed in different

stage called the

a. Technical key resources

b. Work key structure




c. Work Breakdown Structure (WBS).


124. Tool used for comparison of the proposed project to complete projects of a similar nature whose costs are

known.

a. Algorithmic model

b. Expert judgment

c. Top down

d. Analogy

125. Each component of the software product is separately estimated and the results aggregated to produce an

estimate for the overall job.

a. Algorithmic model

b. Expert judgment

c. Bottom-up

d. Top down

126. Following is (are) the component(s) of risk management

a. Risk Assessment

b. Risk Control

c. Risk Ranking

d. All of the above

127. Following are the characteristics of Project Mindset.

a. Time, Responsiveness, Information sharing, Processes, structured planning

b. Time, Project management, Information sharing, Processes, structured planning

c. Time, Responsiveness, Information sharing, capability, structured planning

d. Time, Responsiveness, Information sharing, Processes, project planning

128. “Devising and maintaining a workable scheme to accomplish the business need” is

a. Initiating process

b. Planning process

c. Executing process

d. Controlling process

129. Controlling the changes in the project may affect

a. The progress of the project

b. Stage cost




c. Project scope

d. All of the above

130. Following is (are) the tool(s) for changing a process

a. Change Management System (CMS)

b. Configuration Management (CM)

c. Both A. and B.


131. A communication management plan identifies the relevant information that should be

communicated to:

a. the project team.

b. the project stakeholders.

c. the project board.

d. the project sponsor.

132. Which one of the following statements is true?

a. Independent reviews and quality audits form part of quality assurance to ensure the project manager

delivers on time and to budget.

b. Quality assurance provides confidence to stakeholders that requirements for quality will be exceeded.

c. Quality control verifies that the project deliverables conform to specification, are fit for purpose and

meet stakeholder expectations.

d. Quality planning enables the project manager to manage the trade-off between customer expectations

and budget.

133. Project risk management is best described as:

a. managing responses to threats.

b. identifying and acknowledging threats and opportunities.

c. planning responses to threats.

d. minimising threats and maximising opportunities.

144. Which one of the following best describes a project issue?

a. A major problem that requires formal escalation.

b. A problem that the project manager has to deal with on a day-to-day basis.

c. An uncertain event that may or may not occur.

d. An opportunity that occurs through change control.

145. Scheduling can best be defined as the process used to determine:




a. overall project duration.

b. project cost estimating.

c. the project management plan.

d. sub-contractor’s responsibilities.


a. An increase in project scope is likely to increase project cost.

b. A decrease in the project time is likely to increase project quality.

c. An increase in the project quality requirements is likely to decrease project cost.

d. A decrease in the project cost is likely to decrease project time.

147. Which one of the following statements best defines the purpose of a Product Breakdown Structure

(PBS)?

a. To define the hierarchy of deliverables that are required to be produced on the project.

b. To define how the products are produced by identifying derivations and dependencies.

c. To establish the extent of work required prior to project commissioning and the handover.

d. To identify the health and safety strategies and procedures to be used on the project.

148. Which one of the following is least likely to be a success criteria?

a. A target for the project to receive zero change requests.

b. The date by which the project is to be completed.

c. Delivery of products that meet required specifications.

d. The awarding of bonuses to senior management.

149. Which one of the following is a valid project Key Performance Indicator (KPI)?

a. Staff appraisals.

b. Management buy in.

c. Milestone achievement.

d. Master schedule.


a. The business case is owned by the sponsor and is created during the concept phase of the project life

cycle.

b. The business case is owned by the project manager and is created during the concept phase of the project

life cycle.

c. The business case is owned by the sponsor and is created during definition phase of the project life cycle.

d. The business case is owned by the project manager and is created during the definition phase of the

project life cycle.




151. Who owns the Project Management Plan (PMP)?

a. The project team.

b. The chief executive.

c. The project manager.

d. The project support office.

152. Which one of the following best describes users?

a. Providers of both strategic and tactical direction to the project.

b. Those intended to receive benefits or operate outputs.

c. Facilitators of an appropriate issue resolution procedure.

d. Those providing full-time commitment to the project.

153. Which statement best describes a responsibility of the project manager:

a. to be the sole source of expertise for estimating techniques on cost and time.

b. to deliver the project objectives to enable benefits to be realised.

c. to take ultimate accountability for the delivery of the business benefits.

d. to delegate all accountability for managing time, cost and quality to team leaders.

154. A project is typically defined in terms of scope, time, cost and which other parameter?

a. Benefits.

b. Quality.

c. Tolerance.

d. Controls.


a. Business-as-usual activities cannot be improved.

b. Business-as-usual activities are more difficult to manage than projects.

c. Projects are transient endeavours that bring about change to business-as-usual.

d. A project is always the starting point for operation refinement.

156. What is defined as “the ability to influence and align others towards a common purpose”?

a. Teamwork.

b. Motivation.

c. Management.

d. Leadership.

157. Which one is a true statement relating to project communications?




a. A project sponsor is responsible for all communication methods and media.

b. Different stakeholders typically have different communication needs.

c. It is best to have a standard set of project reports used for every project.

d. Email is the only way to communicate with large numbers of people.

158. In project management, the term quality is best defined as:

a. inspection, testing and measurement.

b. reviews and audits.

c. fitness for purpose of deliverables.

d. professionally-bound project reports.

159. The main outcome of risk identification, in a risk management process, is to:

a. identify and determine the relative importance of the project risks.

b. identify and describe all risks that might occur on the project.

c. identify and determine the responses to the project risks.

d. identify and describe risks that have occurred on previous projects.

160. Which one of the following is not considered in resource management?

a. Identifying resources.

b. Influencing resources.

c. Assigning resources to activities.

d. Matching resources to the schedule.

161. Which one of the following does project change control primarily seek to ensure?

a. All variance to the project scope is evaluated.

b. No reduction in the perceived quality of the project outcome.

c. Management costs of the project do not increase.

d. Any decrease in the scoped deliverable of the project is rejected

162. Which one of the following is captured in the Work Breakdown Structure (WBS)?

a. The life cycle phases.

b. The logical order of tasks.

c. The scope of the project.

d. Project costs.

163. Project reporting can best be defined as:

a. informing stakeholders about the project.

b. storing and archiving of project information.




c. gathering stakeholder feedback.

d. collecting project information.

164. Which one of the following statements best defines an estimate?

a. An approximation of project time and cost targets, refined throughout the project life cycle.

b. A prediction of a future condition or event based on information or knowledge available now.

c. The value of useful work done at any given point in a project to give a measure of progress.

d. A situation that affects or influences the outcome of the project expressed in time or cost terms.

165. The justification for the investment to be made in a project is documented in the:

a. Cost Breakdown Structure.

b. procurement strategy.

c. business case.

d. Project Management Plan.

166. Which one of the following is a responsibility of the project steering group/board?

a. To identify potential problems for the project team to solve.

b. To provide strategic direction and guidance to the sponsor.

c. To manage the project team in all daily activities.

d. To receive and consider daily reports from team members.

167. One of the reasons a project life cycle is split into phases is to:

a. facilitate formal go/no-go decision making during the project.

b. balance the costs of work in each phase of project development.

c. mirror the major deployments of resources throughout the project.

d. chunk work into time periods of similar durations.

168. Which of the following best describes a project environment?

a. The type of organisation concerned with implementation.

b. The structured method used to control the project.

c. The context within which a project is undertaken.

d. An understanding of the risks involved in the project.

169. Which one of the following statements best describes a project?

a. A project is a set of tools and techniques often used when delivering organisational change.

b. A project is the sum of activities needed to remove uncertainty from a unique piece of work.

c. A unique transient endeavour undertaken to achieve a desired outcome.

d. A project is a method of planning work.




170. The document that identifies what information needs to be shared, to whom, why, when and how is called

the:

a. communication management plan.

b. stakeholder mapping grid.

c. document distribution schedule.

d. responsibility assignment matrix.

171. An important aim of a post-project review is to:

a. validate overall progress to date against the budget and schedule.

b. capture learning and document it for future usage.

c. ensure acceptance of all permanent documentation, signed by the sponsor.

d. establish that project benefits have been identified.

172. The process that evaluates overall project performance to provide confidence is called:

a. quality assurance.

b. quality planning.

c. quality control.

d. quality audit.

173. Which one of the following statements about the project risk register is false?

a. It facilitates the review and monitoring of risks.

b. It facilitates the risk appetite.

c. It facilitates the recording of risk responses.

d. It facilitates the recording of risks.

174. Which one of the following statements best defines procurement?

a. A technique to establish the best approach for obtaining the resources for the project.

b. A group of interrelated resources and activities that transform inputs into outputs.

c. The description of the purpose, form and components to support delivery of a product.

d. The process by which products and services required for the project are acquired.

175. Once a change has been requested what is the next step in the change control process?

a. Evaluate the change.

b. Advise the sponsor.

c. Update the change log.

d. Update the project plan.




176. A Responsibility Assignment Matrix (RAM) can be used to:

a. define the terms of reference of the project manager.

b. define the limits of the project sponsor’s responsibilities.

c. allocate risk management response activities to project personnel.

d. allocate work packages to those responsible for project work.

177. An Organisational Breakdown Structure (OBS) is used to identify:

a. the reporting structure and current availability of all individuals in the project.

b. technical ability and line of communication for all individuals in the project.

c. lines of communication and responsibility for all the individual managers in the project.

d. the reporting structure and lines of communication for all individuals in the projects.

178. Which one of the following best describes project success criteria?

a. Actively seeking some senior management support.

b. Measures by which the success of the project is judged.

c. Achievement of milestones.

d. A motivated project team.

179. Comparative estimating uses:

a. current data from similar projects.

b. historic data from all projects.

c. historic data from similar projects.

d. current data from all projects.

180. Which one of the following best describes a project stakeholder?

a. A party who is concerned about the project going ahead.

b. A party with an interest or role in the project or is impacted by the project.

c. A party who has a vested interest in the outcome of the project.

d. A party who has a financial stake in the organisation managing the project.

181. The main purpose of the Project Management Plan is to:

a. provide justification for undertaking the project in terms of evaluating the benefit, cost and risk of

alternative options.

b. ensure the project sponsor has tight control of the project manager’s activity.

c. document the outcomes of the planning process and provide the reference document for managing the

project.

d. document the outcome of the risk, change and configuration management processes.




182. Who has ultimate responsibility for project risk?

a. Steering group.

b. Risk owner.

c. Project sponsor.

d. Project manager.




Unit 5 : Implementing MCS for small & medium size companies

183. 4. ________ is the study of how to create an organizational structure that leads to high efficiency and

effectiveness.

a. Scientific management

b. Job specialization

c. Administrative management

d. Allocation management

185 . 8. The _______ theory states a manager's choice of organizational structures and control systems depends on

characteristics of the external environment.

a. Mechanistic

b. Management science

c. Organic

d. Contingency

186. Which of the following is a characteristic of a Public sector organization?

a. Private ownership

b. Primary profit making motive

c. Strict financial control by Government

d. None of the above.

187. Which of the following indicates the importance of planning?

a. Makes way for orderly activities

b. Provides a basic for control in an organization

c. Reduces risk of uncertainty

d. All of the above.

188. Organizing destroys:

a. individual relationships,

b. plans,

c. simplicity in the organization,

d. environment.

189. For effective organizing, an organization required:

a. principle of balance,

b. span of management,

c. organization process,

d. planning and forecasting.

190. The structure of organization includes:

a. identification and classification of required activities,

b. informal organization,




c. establishing enterprise objectives,

d. authority relationships.

191. In a formal organization, “power” is associated with:

a. an individual,

b. position,

c. relationship,

d. control

192. Defective delegation:

a. hampers coordination

b. size of the organization,

c. establish proper controls,

d. establish sources of powers.

193. Organizational structure is made up of key elements. Which of the following is not one of these elements?

a. Centralisation

b. Coordination

c. Decentralisation

d. Span of control

194. The systems approach _______________________?

a. Emphasises the technical requirements of the organization and its needs

b. Emphasises the psychological and social aspects

c. Encourages the managers to view the organization both as a whole and as a part of larger environment

d. All of the above.

195. ____________ provides a focus and direction for formulating strategy to achieve organizational objectives.

a. Management by objectives

b. Strategy by objectives

c. Management by strategy

d. Strategic planning model.

196. Control is a function aimed at:

a. economic development,

b. staffing,

c. organizational development

d. planning

197. Which of the factors listed below is not a reason for decision making in organizations being a complex

process?

a. People have to make decisions in a historical context

b. Several stakeholders will have an interest in the decision

c. Factors in the current context of the organization affect the decision




d. Modern information systems enable people to evaluate a range of possible outcomes.

198. An employee's experiences in a situation or position outside his or her current organization is a referent

comparison called:

a. Self-outside

b. Other-inside

c. Other-outside

d. Self-inside d. Managers are chosen for their intellectual ability and rationality.

199. What sort of groups is defined by the organization’s structure?

a. informal

b. Task

c. friendship

d. formal

200. Which of the following does not increase conflict in organizations?

a. Superordinate goal

b. Devil's advocate

c. Heterogeneous groups

d. Organizational culture

Unit1 : Introduction To Management Control System

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