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Redeveloped Division Initiated Self-Learning Module

Department of Education
i – Division of Palawan
Organization and Management – Grade 11
Redeveloped Division Initiated - Self-Learning Module
Quarter 2 – Module 6: Control Methods and Techniques in Accounting and Marketing
Second Edition, 2021

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of
such work for profit. Such agency or office may, among other things, impose as a
condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright
holders. Every effort has been exerted to locate and seek permission to use these
materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.

Published by the Department of Education, Division of Palawan

Schools Division Superintendent:
Roger F. Capa, CESO VI
OIC - Assistant Schools Division Superintendents:
Rufino B. Foz
Arnaldo G. Ventura, Ph.D.

Development Team for

Development Team
Redevelopment Activity

Writer: Mark G. Javillonar Writer: Mark G. Javillonar,

Editors: Edheson M. Gapad, Marianne R. Editors: Edheson M. Gapad, Marianne R.
Valdez Valdez
Illustrator: Illustrator:
Layout Artist: Mark G. Javillonar Layout Artist: Mark G. Javillonar
Reviewer: Eric N. Quillip Reviewer: Sean A. Catelo
Management Team: Management Team:
Aurelia B. Marquez Aurelia B. Marquez
Rosalyn C. Gadiano Rosalyn C. Gadiano
Rodgie S. Demalinao Rodgie S. Demalinao
Eric N. Quillip Sean A. Catelo

Department of Education – MIMAROPA Region – Division of Palawan

Office Address: PEO Road, Barangay Bancao-Bancao, Puerto Princesa City
Telephone: (048) 433-6392
E-mail Address: palawan@deped.gov.ph
Website: www.depedpalawan.com

ii
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners, can
continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each
lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each SLM.
This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how
they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests.
And read the instructions carefully before performing each task

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.

iii
 Organization and
Management 11
Second Quarter
Control Methods and Techniques
Week 6 in Accounting and Marketing

MELC: Apply the concept and nature of different control methods and
techniques in accounting and marketing.
Objective/s:
1. To discuss the nature of controlling;
2. To determine control methods and techniques applicable in
accounting and marketing;
3. To perform budget planning.

What I Know
Directions: Choose the letter of the best answer and write it on your answer
sheet.

1. Which of the following is used to verify that plans are being observed and
appropriate progress is being made towards the objectives and that
deviations are being corrected if necessary?
a. Control c. Controlling
b. Control process d. Management Control System

2. Which basic step in the controlling process requires accurate data on real
performance, which helps the manager to see how things are?
a. Establishing standards against which performance can be measured.
b. Comparing actual performance against standards.
c. Correcting deviations or straightening up what is crooked.
d. Preliminary Control system.

3. It is a systemic process through which managers regulate organizational

activities to ensure that they are consistent with the expectations set out in
detail in their plans, objectives, and performance standards.
a. Systems c. Managerial Control
b. Control methods d. Control process

1
4. Which of the following is NOT a control area?
a. Information c. Finance
b. Employee conduct d. Procedures

5. This type of control applies corrections as they come or are needed.

a. Feedforward Control c. Concurrent Control
b. Feedback Control d. Quantitative Control

6. Which of the following is focused on the overall control of performance

instead of concentrating on specific purposes?
a. Bureaucratic control c. Quantitative Control Method
b. Qualitative Control Methods d. Normative control

7. Which of the following is NOT a characteristic of an effective control

system?
a. It uses different standards from the objective.
b. Appropriate for the activity.
c. Provides relevant and usable control data.
d. It is flexible to sudden changes.

8. It is a system that collects and uses the information to assess the

performance of various organizational sources, whether human, financial,
accounting, physical, commercial, or otherwise.
a. Activity-based costing c. System Control
b. Management Control System d. Controlling

9. Which of the following is used to prioritize project costs and revenue and to
control expenditure and ensure that expenditure does not exceed the
funds and revenue available?
a. Budgeting c. Budget
b. Benchmarking d. Balanced Scorecard

10. It is generally based on cooperation and engagement and contrasts with

approaches that utilize radical changes or top-down edicts to achieve
transformation.
a. Balance Scorecard c. Budgeting
b. Total Quality Management d. Kaizen

11. Which of the following BSC perspectives includes profitability, growth,

shareholder value, and the establishment ratios?
a. Customer c. Financial
b. Organizational learning d. Internal

2
12. Which of the following is an example of Internal perspective and
objectives?
a. Improve gross profit margin
b. Increase effectiveness of salesforce
c. Outperform other suppliers
d. Create customer and project-focused teams

13. It is an accounting statement that provides a snapshot of a company’s

financial position at a particular time.
a. Balance Sheet c. Cashflow analysis
b. Income Statement d. Financial ratio

14. It pertains to a quantitative plan through which managers decide how to

allocate available money to best accomplish company goals.
a. Control c. Revenue Budgets
b. Budgets d. Cash budgets

15. Which of the following is used within departments and divisions to

determine how much will be spent on various supplies, projects, or
activities?
a. Revenue budgets c. Expense budgets
b. Profit budgets d. Cash budgets

What is It

If the planning, organizing, and leading functions of a manager are done

properly, the need to perform controlled functions will be lesser. This module
will help you understand fully the concepts and nature of controlling to better
prepare you for a management position in the future.

What is Control?
 Control is defined as any process aimed at the achievement of
organizational aims by the activity of individuals.
 Control shall verify that plans are being observed and appropriate
progress is being made towards the objectives and that deviations are
being corrected if necessary.

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  Control is a regulatory process that establishes standards to achieve the
organization’s goals, compares actual performance to standards, and,
where necessary, takes corrective action to restore performance.
 It is a continuous, dynamic, cybernetic process and not a unique
accomplishment or outcome.

What is Controlling?
Controlling can be defined as the management activity to ensure the
achievement of the objective of the organization.

Why is there a need to control?

If the planning, organizing, and leadership functions are carried out correctly,
little control will be needed. The fact remains, however, that little has ever been
done properly. No manager can develop a complete plan or predict any
eventuality. Therefore, the manager must establish efficient controls in his
organization so that his efficiency cannot be disturbed by internal and external
forces.
Control systems enable the planning and organization concept to be
implemented effectively. The control systems ensure that activities are carried
out as planned, those goals are achieved, and that management and
supervisors are helped by the delegation of authority, as controls often
motivate managers to exercise power.

The Control Process

The controlling process has three basic steps:
1. Establishing standards against which performance can be measured.
These standards are closely linked to the goals set by the manager
during the planning phase. These standards, frequently expressed in
money, time, quotas, etc., are how things should be. Standard means a
comparison basis to measure how successful or unsatisfactory various
types of organizational performance are.
2. Comparing actual performance against standards. This step, which
requires accurate data on real performance, helps the manager to see
how things are.
3. Correcting deviations or straightening up what is crooked. Following the
identified reasons for the deviations, appropriate measures need to be
taken to ensure that performance is carried out in accordance with
plans.

4
Organizational or Managerial Control
This is a systemic process through which managers regulate organizational
activities to ensure that they are consistent with the expectations set out in
detail in their plans, objectives, and performance standards.

Systems can be a collection of components or elements organized to make

the flow of work consistent, homogeneous, orderly, and smooth.

Control methods are more tailored to monitor operational abnormalities,

discrepancies, or variances, while systems guarantee that operational
efficiency and faster turnaround are implemented and implemented in a
more organized way. Somehow, good systems reduce the need for more
organizational control methods.

Control systems are generally linked to the strategy accepted by members,

accurate, flexible, timely, ready to indicate exceptions at a reasonable
expense, and can provide remedial measures. It ensures activity is carried out
according to plans; ensures the achievement of goals; and helps managers
and supervisors to delegate authority because controls frequently encourage
managers to exercise power. Control areas: information, finance, employee
conduct, and activities.

Types of control often used in organizations

1. Feedforward control (Preliminary Control) – This is intended to identify
problems prior to occurring. It prevents, prevents, organizes, works, and
motivates deviations by ensuring that all possible malfunctions are
cleared up. It focuses on This control is the best because it makes it
possible to correct deviations before they seriously result in the failure to
meet the objectives of the organization. It focuses on the human,
material, and financial resources in an enterprise.
Ex: Advance scheduling of leave to meet anticipated workloads
on specific periods is an example of feedforward control. This method of
control requires more time, money, and effort.
Guidelines for Using Feedforward Control:
 Thorough planning and analysis are required.
 Careful discrimination must be applied in selecting input variables.
 A feedforward system must be kept dynamic.
 A model of the control system should be developed.
 Data on input variables must be regularly collected.
 Data on input variables must be regularly assessed.
 Feedforward control requires action.

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 2. Concurrent Control – this type of control applies corrections as they
come or are needed. Unlike the feedforward control, this type of control
has no predictive value. This control attempts to monitor the ongoing
operation. Under this kind, the next step cannot be taken until a
screening test is passed. It consists of monitoring the ongoing activities of
employees to ensure that they compete with established standards.
Ex: Since the office building is old, employees are carefully
watching their steps to avoid falling or being hit.
3. Feedback Control (Post-Action Control) – this type of control tries to fix a
problem after an incident. This is the poorest form of control because it
is wasteful of resources. It exists only for the improvement of the next
attempt. It focuses on the organization’s outputs.
Ex: After finding out that the office is unsafe due to old age, the
manager decided to vacate the building and rent out a safer one.

Two fundamental Control Methods:

1. The Quantitative Control Method uses data and other quantitative tools
for monitoring, controlling, and validating performance. Charts,
budgets, and audits are the most frequent of these tools.
2. Qualitative Control Methods are focused on the overall performance of
the organizations rather than the specific purposes. The instruments can
be inspected, supervised directly, coached, and evaluated.

Other control methods:

1. Bureaucratic control is top-down control in which management tries to
affect the behavior of employees by rewarding or punishing employees
for complying with organizational policies, rules, and procedures or for
failure to comply. It consists of standard operating procedures and
policies which provide for the right behavior of the employee. It uses
rules, policies, authoritative hierarchy, rewards, and other formal
mechanisms to influence the behavior of employees and evaluate their
performance.
2. Objective control is the application of observable worker behavior or
output measures to evaluate performance and influence behavior. The
focus is on the behavior or output of the worker. Two types of target
control: (1) control of behavior – regulating the behavior and actions
performed by workers on the job and (2) control of output – regulating
worker results or results with incentives and rewards.
3. Normative control, with this control a company’s widely shared values
and beliefs, guides workers’ behavior and decisions.

6
 4. Concertive control is the regulation of the behavior and decisions of
workers through workgroup beliefs and values. It is based on the
convictions which the working group shapes and negotiates. It often
happens when businesses empower working groups and are responsible
for completing tasks.
5. Self-control (self-management) is a control system in which managers
and employees manage their behavior through the establishment of
their own goals, the monitoring of progress, and a reward for achieving
goals.

Characteristics of an Effective Control Systems

1. It must be appropriate for the activity to be regulated and the minimum
required to achieve the desired performance.
2. The standard used must be objective and measurable.
3. The "exception principle" is used in an effective control system that only
management's attention is necessary for exceptional circumstances.
4. It only provides relevant and usable control data to the concerned
manager.
5. It reported unwanted deviations quickly so that managers could act in
time to prevent them.
6. If a plan fails or suddenly changes, it must be flexible otherwise it cannot
maintain operations control.
7. It must be worth the expense.
8. It shows the way to corrective action.
9. It pinpoints where responsibility lies for the various control activities.
10. It periodically reviews standards and objectives.
11. This is an ongoing process, because an organization's environment,
operations, staff, etc. change continually.

Applying Management control in Accounting and Other Functional Areas

A management control system is a system that collects and uses the
information to assess the performance of various organizational sources,
whether human, financial, accounting, physical, commercial, or otherwise.
Cost accounting, difference accounting, and management monitoring or
accountability comprise the most popular management accountability
system. Management Accounting refers to a set of practices such as
budgeting or costing of products. Management systems use various
techniques.

7
Few management control systems concepts and techniques
1. Activity-based costing. It is an approach to the costing and monitoring
of activities that involves tracing resource consumption and costing final
outputs. It is also known as cost based on transactions. The costing
method is designed to provide cost information to managers for
strategic and other decisions that could affect capacity and thus "fixed"
costs. Resources are assigned to activities, and activities to cost objects
based on consumption estimates. The latter utilize cost drivers to attach
activity costs to outputs.
2. Budgeting. It is a process of creating a spending plan. It just balances
your expenditure with your revenues. Budgets are used to prioritize
project costs and revenue and to control expenditure and ensure that
expenditure does not exceed the funds and revenue available.
3. Benchmarking is looking at performance levels outside of your
organization, or sometimes across departments or divisions inside your
organization, to evaluate your performance. Benchmarking can be
done using different criteria such as (1) industry; (2) Geography; (3)
Organization; (4) Processes; (5) Innovation
4. Total Quality Management (TQM) is an integrative management
approach that supports the realization of customer satisfaction through
a wide range of tools and techniques that produce goods and services
of high quality.
5. Kaizen or Continuous Improvement. It is an approach to constant
improvement based on the notion that there are significant
improvements to minor, ongoing positive changes. It is generally based
on cooperation and engagement and contrasts with approaches that
utilize radical changes or top-down edicts to achieve transformation.

The Balanced Scorecard (BSC)

 It was based on the belief to interferes with organizational growth and
progress with performance measurement systems that rely heavily on
financial measures.
 In 1990, Kaplan and Norton carried out research into this framework and
management methodology. The framework was designed to tackle
common challenges facing executives, such as single performance
measures, and to focus on previous achievements. On the strategic side,
the vision, task, and goals were not related to this work at the ground
level, other questions were poorly addressed by financial measures.
 BSC adds a strategic aspect to management control since the
framework provides multiple performance measures, future equilibriums,

8
 and past actions to communicate the high-level view and to define the
cause and impact of business operations and business vision.
 Although the terms appear to be tedious and difficult to read, the
experience of companies using the BSC framework shows their ability to
communicate, not just to control the performance of their undertakings.
The framework execution links the perspective, allowing the top
management guidelines to filter to field staff.

The four perspectives offered by the BSC Framework

1. Financial Perspective includes profitability, growth, shareholder value,
and the establishment ratios.
2. Customer Perspective measures customer satisfaction, service, and
repeat business
3. Internal Perspective processes operational facets such as productivity,
cycle time, and cost.
4. The organizational learning perspective assesses continuous learning,
market innovation, and intellectual assets.

Sample Balance Scorecard (BSC) perspective and objectives

Operational
Financial Customer Internal
Learning
Improve gross Develop customer Increase Build skills and
profit margin partnerships effectiveness of offer portfolio for
based on trust, salesforce creative solutions
professionalism,
and shared values
Reduce Become preferred Improve delivery Create customer
manufacturing supplier performance and project-
and purchase focused teams
cost
Pursue economic Outperform other Improve Build capability to
value-added suppliers responsiveness to differentiate on
opportunities opportunities service provision
Improve Build
responsiveness technological
and reliability in capabilities
the supply of
products and
services
Source: CHRSA, Inc., 2000

9
The objectives could be linked to balancing the performance measures of the
company depending on the situation of the enterprise while simultaneously
employing the same tool as communication to direct goals towards the
business vision.

Sample scorecard
Financial Improve gross profit margin
Customer Develop customer partnerships based on trust,
professionalism, and shared values
Internal Increase effectiveness of salesforce
Organizational Create customer and project-focused teams
Learning
Source: CHRSA, Inc., 2000

As shown in the sample scorecard, the effort and training for effective sales
performance by the sales team (field personnel) enable partnerships with
clients that ultimately increase the company's gross margins.

The Financial Perspective: Controlling Budgets

The traditional approach to controlling financial performance focuses on

accounting tools such as:
1. Cashflow analysis, a type of analysis that predicts how changes in a
business will affect its ability to take in more cash than it pays out.
2. Balance Sheets is an accounting statement that provides a snapshot of
a company’s financial position at a particular time (but not the future)
3. Income Statements (profit-and-loss statement) is an accounting
statement that shows what has happened to an organization’s income,
expenses, and net profit over some time.
4. Financial Ratios are calculations typically used to track a business’s
liquidity (cash), efficiency, and profitability over time compared to other
businesses in its industry.
5. Budgets are a quantitative plan through which managers decide how
to allocate available money to best accomplish company goals.

Common Kinds of Budgets:

1. Revenue Budgets – used to project or forecast future sales.
 The accuracy of projection depends on the economy,
competitors, sales force estimates, etc.

10
  Determined by estimating future sales volume and sales prices for
all products and services.
2. Expense Budgets – used within departments and divisions to determine
how much will be spent on various supplies, projects, or activities.
 One of the first places that companies look for cuts when trying to
lower expenses.
3. Profit Budgets – used by profit centers, which have “profit and loss”
responsibility.
 Profit budgets combine revenue and expense budgets into one
budget.
 Typically used in large businesses with multiple plats and divisions
4. Cash Budgets – used to forecast how much cash a company will have
on-hand to meet expenses.
 It is similar to cash-flow analyses.
 Used to identify cash shortfalls, which must be covered to pay bills,
or cash excesses, which should be invested for a higher return.
5. Capital Expenditure Budgets – used to forecast large, long-lasting
investments in equipment, buildings, and property.
 Help managers identify funding that will be needed to pay for
future expansion or strategic moves designed to increase
competitive advantage.
6. Variable Budgets – used to project costs across varying levels of sales
and revenues.
 Important because it is difficult to accurately predict sales
revenue and volume.
 Lead to more accurate budgeting concerning labor, materials,
and administrative expenses, which vary with sales volume and
revenues.
 Build flexibility into the budgeting process.
 Sample Budget:

11
 What I Can Do

Activity 1. Matching Type

Directions: Match the statements in Column A to the terms in Column B. Write
the letter of your answer on your answer sheet.

BUSINESS ACADEMY
Narra, Palawan
BUDGET PROPOSAL
For the Fiscal Year: May 1, 2016 to April 30, 2017
SOURCES OF INCOME
Tuition fees - Pre-school ₱ 108,750.00
Elementary 155,250.00
High School 99,000.00
Miscellaneous fees 388,000.00
Registration Fees 48,500.00
Materials 38,000.00 ₱ 837,500.00
OTHER SOURCES:
18% Discount on Books 71,300.00
Chapel Service Offerings 8,000.00
Canteen Rental 4,000.00
Violin Share 10,000.00
School Anniversary 5,000.00
Back Accounts 259,672.00
TOTAL PROPOSED INCOME TO BE GENERATED ₱ 1,195,472.00

EXPENTIDURES TO BE INCURRED ON
Salaries - School Year 2015 - 2016 ₱ 741,600.00
13th Month Pay 64,716.67
SSS - Employer Contribution 49,483.40
SSS - EC Employer Contribution 1,200.00
HDMF - employer contribution 11,600.00
PHILHEALTH - Employer contribution 10,150.00
School & Office Supplies 20,500.00
Utilities Exp – Water 6,000.00
Utilities Exp – Electric 15,000.00
Incidental Expenses 275,221.93
TOTAL PROPOSED EXPENES TO BE INCURRED ₱ 1,195,472.00

12
 Column A Column B
1. It is a continuous, dynamic, cybernetic
process and not a unique
accomplishment or outcome. A. Control

2. It ensures activity is carried out according B. Control System

to plans; ensures the achievement of
goals; and helps managers and C. Feedforward Control
supervisors to delegate authority.
D. Budgeting
3. This method of control requires more time,
money, and effort.
E. Balanced Scorecard
4. It is a process of creating a spending plan.
F. Activity-based costing
It just balances your expenditure with your
revenues.

5. This framework was designed to tackle

common challenges facing executives,
such as single performance measures,
and to focus on previous achievements.

Activity 2. Be in control
Directions: Read the case below and provide answers to the following
questions.

1. What does the case all about?

2. If you were the owner of the retailing business, what will be your
assumptions on the quantitative aspect?
3. If you were the owner of the retailing business, what will be your
assumptions on the qualitative aspect?

13
Measuring results for larger businesses require more time and effort
than smaller businesses. Compared to a small stall, a retailing business
such as a Drug house require its owner to go through each stage of
the management wheel more thoroughly. From the goal setting and
execution of the plan, the manager must departmentalize the retail
store operations. There should be individual departments to take care
of inventory, purchasing, maintenance, personnel, and other
necessary functions in the operation. And so, while the head of
grocery inventory will manage to submit a status report of his/her
department, in just a week, the owner, may take a month before
he/she can fully assess the status of his/her retailing business. To do
this, he/she will have to study the synergy of the departments, the
cashflow, purchase of supplies versus sales, and others. He/she will
also measure the success of his/her business through quantitative and
qualitative instruments. The quantitative aspect in the case of retailing
business refers to the increase or decrease of shoppers, as well as how
the fast products are being sold. The quantitative aspect, on the other
hand, basically refers to customer satisfaction.

Rubrics for Activities 2 and 3

Score Description
5 Presented a clear and exact answer or viewpoint to the question.
The answer is grammatically correct.
4 Presented a reasonable answer or viewpoint to the question. Few
grammar errors are evident.
3 Poorly presented an answer or viewpoint to the question. Lots of
grammar errors are evident.
0 No Answer

14
 What’s More
Activity 3. Analyze and Interpret
Directions: Analyze and explain the diagram below.

Goals of the organization

Strategic planning

Operational Planning

Evaluation and Budget

employee preparation
compensation

Control Management

Performance Resource
measurement allocation (capital
budgeting)

Goals Achievement
Source: https://application.wiley-vch.de/books/sample/352750821X_c01.pdf

Activity 4. Budgeting
Directions: On your answer sheet, do the instructions given below:
1. Get a ¼ piece of paper
2. Write your monthly allowance (computed by daily allowance x number
of days in a month)
3. Write the amount you spend on food, transportation, phone load, etc.
(make it monthly to match their allowance)
4. Deduct the amount you spend from the amount of your allowance
5. Associate allowance with revenue and spending with expense with the
net amount as net income
6. Are you able to religiously follow your spending plan? Why? Why not?

15
 What I Have Learned

Activity 5. Explanation
Directions: On a separate sheet of paper, answer the following questions.

1. Discuss Controlling.
____________________________________________________________________
____________________________________________________________________

2. What is the importance of controlling?

____________________________________________________________________
____________________________________________________________________

3. Differentiate the three controls often used in organizations.

____________________________________________________________________
____________________________________________________________________

16
 Assessment

Directions: Choose the letter of the best answer and write the chosen letter on
your workbook.

1. It pertains to a quantitative plan through which managers decide how to

allocate available money to best accomplish company goals.
a. Control c. Revenue Budgets
b. Budgets d. Cash budgets

2. It is a systemic process through which managers regulate organizational

activities to ensure that they are consistent with the expectations set out in
detail in their plans, objectives, and performance standards.
a. Systems c. Managerial Control
b. Control methods d. Control process

3. It is a system that collects and uses the information to assess the

performance of various organizational sources, whether human, financial,
accounting, physical, commercial, or otherwise.
a. Activity-based costing c. System Control
b. Management Control System d. Controlling

4. Which of the following is NOT a control area?

a. Information c. Finance
b. Employee conduct d. Procedures

5. It is generally based on cooperation and engagement and contrasts with

approaches that utilize radical changes or top-down edicts to achieve
transformation.
a. Balance Scorecard c. Budgeting
b. Total Quality Management d. Kaizen

6. This type of control applies corrections as they come or are needed.

a. Feedforward Control c. Concurrent Control
b. Feedback Control d. Quantitative Control

7. Which of the following BSC perspectives includes profitability, growth,

shareholder value, and the establishment ratios?
a. Customer c. Financial
b. Organizational learning d. Internal

17
8. Which of the following is focused on the overall control of performance
instead of concentrating on specific purposes?
a. Bureaucratic control c. Quantitative Control Method
b. Qualitative Control Methods d. Normative control

9. Which of the following is NOT a characteristic of an effective control

system?
a. It uses different standards from the objective.
b. Appropriate for the activity.
c. Provides relevant and usable control data.
d. It is flexible to sudden changes.

10. Which of the following is used within departments and divisions to

determine how much will be spent on various supplies, projects, or
activities?
a. Revenue budgets c. Expense budgets
b. Profit budgets d. Cash budgets

11. Which of the following is used to prioritize project costs and revenue and to
control expenditure and ensure that expenditure does not exceed the
funds and revenue available?
a. Budgeting c. Budget
b. Benchmarking d. balanced Scorecard

12. Which basic step in the controlling process requires accurate data on real
performance, which helps the manager to see how things are?
a. Establishing standards against which performance can be measured.
b. Comparing actual performance against standards.
c. Correcting deviations or straightening up what is crooked.
d. Preliminary Control system.

13. Which of the following is an example of Internal perspective and

objectives?
a. Improve gross profit margin
b. Increase effectiveness of salesforce
c. Outperform other suppliers
d. Create customer and project-focused teams

14. Which of the following is used to verify that plans are being observed and
appropriate progress is being made towards the objectives and that
deviations are being corrected if necessary?
a. Control c. Controlling
b. Control process d. Management Control System

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What I Know Assessment
1. A 1. B Activity 1
2. B 2. C 1. A
3. C 3. B 2. B
4. D 4. D 3. C
5. C 5. D 4. D
6. B 6. C 5. E
7. A 7. C
8. B 8. B
9. C 9. A Activity 2, 3, 4,
10. D 10. C and 5
11. C 11. C Students’
12. B 12. B answers may
13. A 13. B vary. Refer to
14. B 14. A rubrics for rating
15. C 15. A
Answer Key
b. Income Statement d. Financial ratio
a. Balance Sheet c. Cashflow analysis
financial position at a particular time.
15. It is an accounting statement that provides a snapshot of a company’s
 References

Griffin, R.W., and Moorhead G. Human Behavior in an Organization 2nd Edition.

Philippines: Cengage Learning Asia Pte Ltd., 2012

Controlling and its Importance in Management. September 4, 2012,

https://www.youtube.com/watch?v=J_TqI2PqF8g

Introduction to Management Accounting and Control. Accessed October 20,

2021, https://application.wiley-
vch.de/books/sample/352750821X_c01.pdf

Lorenzana, C. Management Theory and Practice Revised Edition. Philippines:

Rex Book Store. Inc., 2003

Orjalo, V., Frias, S., and Pefianco, E. Organization and Management:

Concepts, Caselets, and Exercises. Philippines: The Phoenix Publishing
House, Inc., 2016

Payos, R., Espinosa, E. and Zorilla, O. Organization and Management.

Philippines: Rex Bookstore, Inc. 2016

Williams, C. Organization and Management Concepts and Applications.

Philippines: Abiva Publishing House, Inc., 2017

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