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CLEP Principles of Management - Controlling in Organizations

Terms in this set (24)

controlling
involves comparing actual performance to expected performance through various goals.
Controlling Processes
Establishing standards to measure performance (decisive goals)
Measuring actual performance (measuring tools; balance sheet, etc)
Comparing performance with the standard (actual vs standards; variances)
Taking corrective action (determine changes)
feedforward
taking preventative measures to be sure goals will be accomplished
concurrent control
analyzing processes while they are active.
feedback
analyzing processes after the activity is done
financial controls
ensure that the desired return on investment will occur. (income statement, balance sheet, financial audits & financial ratios)
income statement
show how revenue is converted into a net profit or a bottom line
balance sheet
a statement of the overall financial status of an organization at a fixed point in time
financial ratios
compare financial statement items with other financial statement items to reveal a relationship between the two
financial audits
verifies the accuracy of all financial reporting in an organization as it relates to regulations and shareholder equit
Top-down budgeting
starts at the top management level of an organization; where management decides how resources are allocated, and then the budget is distributed to the lower managers
Bottom-up budgeting
starts at the bottom level of the organization. Lower-level managers and employees determine what they believe the expenses of the department will be based on upcoming projects or goals that need to be met and then send the budget to top management for approval.
Zero-based budgeting
starts with a zero balance and ends with a zero balance. Budget lines are added as projects and activities are planned, and top management reviews the proposed items. (requires justified-spending)
Flexible budgeting
starts with a budget, but unlike traditional budgets, it allows for flexibility in the amount required for projects and activities.
marketing controls
set of procedures used to monitor the success of marketing activities set forth in a company's marketing plan (Customer satisfaction, Pricing, Delivery)
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