B.M. II 1.01 (CW)

Managerial control primarily involves:

• Deciding which products to manufacture

• Monitoring work efforts and taking corrective action

• Hiring new employees

• Setting the organization’s mission and vision

Answer explanation

Managerial control focuses on monitoring work efforts and implementing corrective actions to ensure that organizational goals are met, making this the correct choice over the other options.

Feedforward control is best described as a control that is applied:

• Before the work process begins

• During the work process

• After the work process is completed

• Only when defects are identified

Answer explanation

Feedforward control is a proactive approach that aims to prevent issues by implementing controls before the work process begins, ensuring that potential problems are addressed in advance.

Concurrent control differs from feedforward and feedback controls because it occurs:

• Prior to the start of production

• After sales are finalized

• While the process is happening

• Only in emergency situations

Answer explanation

Concurrent control occurs while the process is happening, allowing for real-time adjustments. This distinguishes it from feedforward control, which is prior to production, and feedback control, which is after the process.

Feedback control focuses on:

• Identifying and preventing errors before they occur

• Controlling performance after production

• Monitoring activities as they happen

• Replacing all defective materials

Answer explanation

Feedback control is primarily concerned with monitoring and adjusting performance after production to ensure quality and efficiency, making 'Controlling performance after production' the correct choice.

Taking corrective action means:

• Ignoring the cause of performance gaps

• Encouraging employees to repeat the same mistakes

• Addressing performance variances to meet standards

• Outsourcing all quality control measures

Answer explanation

Taking corrective action involves addressing performance variances to ensure that standards are met, rather than ignoring issues or encouraging mistakes. This proactive approach is essential for improvement.

Appraisal costs are expenditures related to:

• Preventing defects before they occur

• Inspecting products to find defects quickly

• Repairing products after customer complaints

• Handling damaged products returned from customers

Answer explanation

Appraisal costs are associated with inspecting products to identify defects quickly, ensuring quality control. This choice directly relates to the costs incurred in evaluating products, unlike the other options which focus on prevention or post-sale issues.

Prevention costs in quality management are aimed at (a)  

• Paying for customer refunds after p
• Inspecting products before shipment
• Planning and implementing measures
• Handling warranty claims

Answer explanation

Prevention costs focus on planning and implementing measures to avoid defects entirely, rather than addressing issues after they occur, such as refunds or inspections.

Internal failure costs occur when:

• Defects are caught before the product reaches the customer

• Defects are found only after the customer purchases the product

• Management decides to reduce quality standards

• The product has passed all quality checks successfully

Answer explanation

Internal failure costs arise when defects are identified before the product is delivered to the customer, allowing for corrections without impacting customer satisfaction.

External failure costs result from:

• Preventing defects

• Finding defective products before shipment

• Defective products that reach customers

• Ensuring products meet quality standards prior to sale

Answer explanation

External failure costs arise when defective products reach customers, leading to dissatisfaction and potential returns. This highlights the importance of quality control to prevent such failures.

Sustainability in a business context involves:

• Focusing solely on short-term financial gains

• Ignoring social and environmental factors

• Managing financial, social, and environmental risks for the long term

• Rapidly depleting available resources for profit

Answer explanation

Sustainability in business means balancing financial success with social and environmental responsibility. The correct choice emphasizes managing risks in all three areas for long-term viability, rather than focusing on short-term gains.