1. What is the essential difference between controlling and control mechanisms?

2. Explain the concept of the Six Sigma strategies. Give examples with your answer.

3. What is the potential weakness at the heart of the process of benchmarking, when we compare our performance or results against those of another organization?

4. Why can we legitimately say that a considerable part of the manager’s job is cyclic? What particular cycle are we referring to here?

5. What are the tools of control referred to in the text? Explain the use of each.



1. Describe the budget process. In what respects is a budget both a planning mechanism and a control tool?

2. Explain why capital expense is planned and accounted for in a budget of its own, separate from the operating budget.

3. What is the defining difference between a direct expense and an indirect expense? Give examples of a direct expense and indirect expense with your response.

4. Describe the use of over-aim or contingency planning as used in budget preparation. Evaluate the use of each in the budget preparation process.

5. What is the department manager’s role in identifying, explaining, and acting upon budget variances?

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