Hotel Management - Qp9

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  • 1/15 Questions

    Control is introduced in order to ensure that the programmes, budgets and standards are really being met.

    • True
    • False
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Hotel Management - Qp9 - Quiz
About This Quiz

This Hotel Management - QP9 quiz assesses understanding of control procedures, financial involvement in production, and principles of effective management control, crucial for hotel management professionals.

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  • 2. 

    The accurate setting of standards is a fundamental requirement of every management control system.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The accurate setting of standards is crucial for a management control system to effectively measure and evaluate performance. Standards provide a benchmark against which actual performance can be compared, allowing managers to identify any deviations or variations. By setting accurate standards, organizations can ensure that goals and objectives are clear, performance can be measured objectively, and corrective actions can be taken if necessary. Therefore, it is true that the accurate setting of standards is a fundamental requirement of every management control system.

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  • 3. 

    An essential link between the management of results and decision-making is the process of interpretation.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement suggests that interpretation plays a crucial role in connecting the management of results with decision-making. It implies that without proper interpretation, the results obtained may not be effectively utilized for making informed decisions. Therefore, it can be concluded that the statement is true.

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  • 4. 

    The production control department is responsible for most of the information input which is necessary for the control of these matters, which also concerns quality, materials, machines and labour controls.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because the production control department is responsible for providing the necessary information for controlling various aspects such as quality, materials, machines, and labor. This department plays a crucial role in ensuring that all these factors are effectively managed and controlled to optimize production processes and achieve desired outcomes.

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  • 5. 

    The ______ will be involved in all of the financial aspects which are mentioned in the production departments.

    • Board of directors or top management

    • Production department

    • Finance department

    • Personnel department

    • Marketing department

    Correct Answer
    A. Finance department
    Explanation
    The finance department will be involved in all of the financial aspects mentioned in the production departments. This is because the finance department is responsible for managing the financial resources of the organization, including budgeting, financial planning, and financial analysis. They work closely with all departments, including production, to ensure that financial resources are allocated effectively and efficiently. Additionally, the finance department is responsible for monitoring and controlling costs, evaluating financial performance, and providing financial information and support to other departments.

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  • 6. 

    Where budgeted and actual figures agree, action is normally required.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    In this case, the correct answer is False. The statement suggests that when budgeted and actual figures agree, action is normally required. However, this is not true. When budgeted and actual figures agree, it indicates that the organization's performance is on track and no immediate action is needed. Action is typically required when there is a significant deviation between the budgeted and actual figures, as it may indicate potential issues or opportunities that need to be addressed.

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  • 7. 

    ______ is a method of predetermining the cost of each product.

    • Budgetary control

    • Standard costing

    Correct Answer
    A. Standard costing
    Explanation
    Standard costing is a method of predetermining the cost of each product. It involves setting predetermined standards for the cost of materials, labor, and overhead, and then comparing the actual costs with these standards. This allows management to identify any variances and take corrective actions to control costs. Standard costing is commonly used in manufacturing industries to establish cost benchmarks and measure performance against these benchmarks. It provides a systematic approach to cost control and helps in decision-making related to pricing, budgeting, and performance evaluation.

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  • 8. 

    Real control rarely goes beyond the checking of work which has been performed.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that real control only involves checking work that has already been completed. However, this is not true. Real control involves not only checking work but also actively monitoring and managing the work in progress to ensure that it aligns with objectives and meets quality standards. Therefore, the correct answer is false.

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  • 9. 

    The basic task of control procedures is to maximise cost and minimise revenue.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Control procedures are implemented to ensure that a company's operations are conducted efficiently and effectively. The primary goal of control procedures is to minimize costs and maximize revenue. Therefore, the given statement is incorrect. Control procedures aim to minimize costs and maximize revenue, not the other way around.

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  • 10. 

    To maintain effective control, certain principles must be adhered to, which are:   (Select five)

    • Control must be set according to the nature of the job which is to be performed.

    • Deviations must be reported immediately.

    • Controls must conform to the pattern of the organisation.

    • Controls should not show exceptions at selected points.

    • Control should be flexible and economical in use.

    • Controls should be simple to understand and should indicate the corrective action necessary.

    Correct Answer(s)
    A. Control must be set according to the nature of the job which is to be performed.
    A. Deviations must be reported immediately.
    A. Controls must conform to the pattern of the organisation.
    A. Control should be flexible and economical in use.
    A. Controls should be simple to understand and should indicate the corrective action necessary.
    Explanation
    The answer options that are correct are based on the principles of effective control. Control must be set according to the nature of the job which is to be performed, as different jobs require different levels and types of control. Deviations must be reported immediately to ensure that any issues or problems can be addressed promptly. Controls must conform to the pattern of the organization to ensure consistency and alignment with the overall goals and objectives. Control should be flexible and economical in use to ensure that it is practical and efficient. Controls should also be simple to understand and should indicate the corrective action necessary, so that employees can easily comprehend and take appropriate actions when needed.

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  • 11. 

    A ______ has been defined as: "The systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and costs".

    • Work study

    • Method study

    • Work measurement

    Correct Answer
    A. Method study
    Explanation
    Method study is the correct answer because it involves the systematic recording and critical examination of existing and proposed ways of doing work. This process helps in developing and applying easier and more effective methods and costs. Method study aims to improve productivity, efficiency, and effectiveness by analyzing and optimizing work processes, eliminating unnecessary steps, and reducing waste. It is a key component of work study, which also includes work measurement to determine the time required to perform tasks.

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  • 12. 

    Four important information aspects emerge when one is creating systems of control:

    • Only a proportion of the information which is moving through the organisation is of real management importance.

    • The ability to store vast amounts of information and to call this up at will for processing is available to meet the needs of management.

    • Both the control system and the organisation structure must be designed so as to use the important information, discard that which is valueless, and concentrate only on that which is meaningful for management purposes.

    • It is important that the information system provides for the needs of different levels of management, that is, top and middle management, and for supervisors at work level.

    • Decision-making may be involved at each management level.

    Correct Answer(s)
    A. Only a proportion of the information which is moving through the organisation is of real management importance.
    A. Both the control system and the organisation structure must be designed so as to use the important information, discard that which is valueless, and concentrate only on that which is meaningful for management purposes.
    A. It is important that the information system provides for the needs of different levels of management, that is, top and middle management, and for supervisors at work level.
    A. Decision-making may be involved at each management level.
    Explanation
    The answer is correct because it accurately summarizes the four important information aspects that emerge when creating systems of control. It highlights that only a proportion of the information moving through the organization is of real management importance, emphasizing the need to discard valueless information and concentrate on meaningful information for management purposes. It also mentions the importance of designing the control system and organization structure to effectively use important information. Additionally, it acknowledges the need for the information system to cater to the needs of different levels of management and the involvement of decision-making at each management level.

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  • 13. 

    A work study is needed because it:  (Select three)

    • Leads to savings in production costs and makes more effective use of human effort.

    • Provides information and reveals efficiency.

    • Improves conditions, methods and layout.

    • Ensures a steady flow of material and an equal reward for the same skill and effort.

    Correct Answer(s)
    A. Leads to savings in production costs and makes more effective use of human effort.
    A. Improves conditions, methods and layout.
    A. Ensures a steady flow of material and an equal reward for the same skill and effort.
    Explanation
    A work study is needed because it leads to savings in production costs and makes more effective use of human effort. This is because work study involves analyzing and optimizing work processes, identifying inefficiencies, and finding ways to improve productivity and reduce wastage. It also improves conditions, methods, and layout by identifying ergonomic issues, suggesting improvements to workstations and equipment, and optimizing the layout of the workspace. Additionally, work study ensures a steady flow of material by identifying bottlenecks and implementing measures to improve material handling. It also ensures an equal reward for the same skill and effort by establishing fair and standardized work measurement and incentive systems.

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  • 14. 

    Organisation and Methods is the application of Method Study to clerical activities.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because Organisation and Methods is not the application of Method Study to clerical activities. Organisation and Methods is a broader concept that involves the systematic examination and improvement of all activities within an organization, including both clerical and non-clerical activities. Method Study, on the other hand, specifically focuses on the systematic analysis and improvement of work methods. Therefore, Organisation and Methods encompasses Method Study but is not limited to clerical activities.

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 17, 2014
    Quiz Created by
    Jackson Matthews
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