Control System Costs Quiz

What is a benefit of control in an organization?

• Higher costs of control

• Negative attitudes among employees

• Higher probability of employees working hard

• Increased operational delays

Which of the following is considered a direct out-of-pocket cost of control?

• Time spent on planning

• Cost of cash bonuses

• Behavioral displacement

• Operating delays

What does behavioral displacement refer to?

• Employees focusing on misaligned tasks

• Employees aligning with organizational goals

• Improved customer relationships

• Increased collaboration among teams

What is a consequence of behavioral displacement?

• Increased customer satisfaction

• Improved organizational performance

• Long-term revenue decline

• Enhanced employee morale

What does gamesmanship in organizational performance involve?

• Manipulating the system for personal gain

• Genuine improvement in performance

• Transparent reporting of results

• Collaboration among employees

Which of the following is an example of gamesmanship?

• Delaying processing returns

• Accurate sales reporting

• Providing customer feedback

• Encouraging teamwork

What can be a consequence of gamesmanship?

• Improved financial reports

• Misleading financial reports

• Enhanced customer relationships

• Accurate performance metrics

What is a common cause of operating delays?

• Streamlined processes

• Lengthy review processes

• Effective communication

• Quick decision-making

What can lead to negative attitudes among employees?

• Supportive management

• Flexible work environment

• Strict action controls

• Clear performance targets

Which factor affects Management Control Systems across countries?

• National culture

• Employee satisfaction

• Market competition

• Technological advancements