Hotel Management - Qp9

Control is introduced to ensure that the programs, budgets, and standards are being met. This means that there is a need to monitor and evaluate the progress and performance of these elements to ensure that they are in line with the desired outcomes and objectives. Without control, there would be no way to determine if the programs are effective, if the budgets are being adhered to, and if the standards are being met. Therefore, control is necessary to ensure accountability and to make necessary adjustments or improvements if needed.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.