Page 385 - Business Principles and Management

Unit 4

the standard. When the computer identifies a variance, it prepares a variance
report for the manager. Through the use of computer monitoring and variance
reports, managers can identify problems quickly.

CHECKPOINT
Provide an example of each of the four types of standards.

14.3 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. The final step managers take in the controlling process is
a. establishing performance standards for company goals
b. measuring performance using established standards
c. establishing new goals
d. taking corrective action when standards are not met
2. Consistency in products and performance is measured with a
a. quantity standard
b. quality standard
c. time standard
d. cost standard

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Do you believe managers should perform each of the management
functions in order? Why or why not?
4. Which type of standard do you believe is most important to
improving the overall effectiveness of a business?
Justify your choice.

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