RUTGERS INTRO TO MANAGEMENT EXAM 2
ACTUAL PAPER 2026 SOLUTIONS GRADED A+
◉ Control helps an organization by. Answer: 1. adapt to change and
uncertainty
2. discover irregularities and errors
3. reduce cost, increase productivity, or add value
4. detect opportunities
5. provide performance feedback
6. decentralize decision making and facilitate teamwork
◉ 4 steps of control process. Answer: 1. Establish standards
2. Measure performance
3. compare performance to standards
4. take corrective action, if necessary
◉ Control Standard. Answer: is the desired performance level of a
given goal
◉ Sources of performance data. Answer: 1. Employee behavior and
deliverables (are employees achieving their objectives?)
2. Peer input or observations
,3. Customer feedback
4. Managerial observations
5. Output from a production process
◉ Control Charts. Answer: are a visual statistical tool used for
quality control purposes
◉ Management By Exception. Answer: is a control principle that
states that managers should be informed of a situation only if data
show a significant deviation from standards
◉ After comparing performance to standards, there are three
possible courses of action:. Answer: 1. Make no changes
2. Recognize and reinforce positive performance
3. Take action to correct negative performance
◉ Concurrent Control. Answer: entails collecting performance
information in real-time.
- Helps managers to determine if employees and processes conform
to standards and regulations
◉ Feedback Control. Answer: amounts to collecting performance
information after a task or project is done.
, - Example: customer feedback after they have purchased a product
is used to improve the product
◉ Balance Scorecard. Answer: is a form of control; it provides top
managers with a fast but comprehensive view of the organization via
four indicators:
1. Financial metrics. - Examples: revenue or profit growth, return on
equity (ROE)
2. Customer metrics. - How do customers see us?
3. Internal business process metrics.
4. Innovation and learning metrics.
◉ Fixed budget. Answer: is a projection in which resources are
allocated on a single estimate of costs
- Does not allow for adjustment over time
- If you are allocated $50,000 for buying equipment in a given year,
that is your budget limit even if revenues are much higher than
expected
◉ Variable Budget. Answer: allocates resources in proportion with
various levels of activity.
, - The budget can be adjusted over time (the standards change) to
accommodate relevant changes in the environment
◉ Financial Statement. Answer: summary of some aspect of an
organization's financial status
◉ Balance Sheet. Answer: summarizes an organization's overall
financial worth - that is, assets and liabilities - at a specific point in
time
◉ Income Statement. Answer: summarizes an organization's
financial results - revenues and expenses - over a period of time,
such as a year.
◉ Financial Ratios. Answer: indicators determined from a
company's financial information and used for comparison purposes.
◉ Customer Satisifaction. Answer: the measure of how products or
services provided by a firm meet customer expectations.
◉ Customer Retention. Answer: refers to the actions companies take
to reduce customer defections
ACTUAL PAPER 2026 SOLUTIONS GRADED A+
◉ Control helps an organization by. Answer: 1. adapt to change and
uncertainty
2. discover irregularities and errors
3. reduce cost, increase productivity, or add value
4. detect opportunities
5. provide performance feedback
6. decentralize decision making and facilitate teamwork
◉ 4 steps of control process. Answer: 1. Establish standards
2. Measure performance
3. compare performance to standards
4. take corrective action, if necessary
◉ Control Standard. Answer: is the desired performance level of a
given goal
◉ Sources of performance data. Answer: 1. Employee behavior and
deliverables (are employees achieving their objectives?)
2. Peer input or observations
,3. Customer feedback
4. Managerial observations
5. Output from a production process
◉ Control Charts. Answer: are a visual statistical tool used for
quality control purposes
◉ Management By Exception. Answer: is a control principle that
states that managers should be informed of a situation only if data
show a significant deviation from standards
◉ After comparing performance to standards, there are three
possible courses of action:. Answer: 1. Make no changes
2. Recognize and reinforce positive performance
3. Take action to correct negative performance
◉ Concurrent Control. Answer: entails collecting performance
information in real-time.
- Helps managers to determine if employees and processes conform
to standards and regulations
◉ Feedback Control. Answer: amounts to collecting performance
information after a task or project is done.
, - Example: customer feedback after they have purchased a product
is used to improve the product
◉ Balance Scorecard. Answer: is a form of control; it provides top
managers with a fast but comprehensive view of the organization via
four indicators:
1. Financial metrics. - Examples: revenue or profit growth, return on
equity (ROE)
2. Customer metrics. - How do customers see us?
3. Internal business process metrics.
4. Innovation and learning metrics.
◉ Fixed budget. Answer: is a projection in which resources are
allocated on a single estimate of costs
- Does not allow for adjustment over time
- If you are allocated $50,000 for buying equipment in a given year,
that is your budget limit even if revenues are much higher than
expected
◉ Variable Budget. Answer: allocates resources in proportion with
various levels of activity.
, - The budget can be adjusted over time (the standards change) to
accommodate relevant changes in the environment
◉ Financial Statement. Answer: summary of some aspect of an
organization's financial status
◉ Balance Sheet. Answer: summarizes an organization's overall
financial worth - that is, assets and liabilities - at a specific point in
time
◉ Income Statement. Answer: summarizes an organization's
financial results - revenues and expenses - over a period of time,
such as a year.
◉ Financial Ratios. Answer: indicators determined from a
company's financial information and used for comparison purposes.
◉ Customer Satisifaction. Answer: the measure of how products or
services provided by a firm meet customer expectations.
◉ Customer Retention. Answer: refers to the actions companies take
to reduce customer defections
