Answer the following statements true (T) or false (F)

Question

1. A markdown on certain grocery-store items may result in a rush of customer demand for those products, which is an example of the control systems benefit of detecting threats. 
2. One reason why control is needed is to centralize decision making.
3. The control process begins with measuring performance. 
4. A control standard is the average performance level for a given workplace activity. 

Answer 1

1. FALSE
A markdown on certain grocery store items that results in a rush of customer demand for those products is an example of the use of control systems to detect opportunities, such as reducing prices for similar items.
2. FALSE
Controls allow top management to decentralize decision making at lower levels within the organization and to encourage employees to work together in teams.
3. FALSE
The four control process steps are (1) establish standards; (2) measure performance; (3) compare performance to standards; and (4) take corrective action, if necessary.
4. FALSE
A control standard, or performance standard or simply standard, is the desired performance level for a given goal.