Answer the following statements true (T) or false (F)
1. Standards are best measured when they can be made quantifiable.
2. Performance measures can be obtained through personal observation.
3. A maximum 2% deviation from the standard is the acceptable level prescribed for control systems.
4. Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
1. TRUE
Standards may be narrow or broad, and they can be set for almost anything, although they are best measured when they can be made quantifiable.
2. TRUE
Performance measures are usually obtained from three sources: (1) written reports, including computerized printouts; (2) oral reports, as in a salesperson's weekly recitation of accomplishments to the sales manager; and (3) personal observation, as when a manager takes a stroll of the factory floor to see what employees are doing.
3. FALSE
The acceptable deviation depends on the range of variation built into the standards when they were set.
4. TRUE
Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
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What will be an ideal response?
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