Section 7

Question 1

Definition of Control

Answer 1

An evaluation process whereby actual performance is compared to the desired standard

Question 2

4 Parts of Control

Answer 2

1. The control process
2. How to make the control process effective
3. Breakeven Analysis: Data
4. Managing data to manage the revenue cycle

Question 3

The 3 steps of the control process

How do we measure actual vs. desire

Answer 3

1. Establish Standards / goals
2. Measure Performance
3. Correct Deviations

Question 4

Establishing standards / goals -

Answer 4

1. Establish the criteria to delineate good performance from poor performance
2. Must be quantifiable have a number each OT analyst will process 40 records in 5 hours

Question 5

Measure Performance -

Answer 5

1. Assess the work and compare what was done to the standard over a et period of time

Question 6

Correct DeviationS -

Answer 6

1. Both positive and negative (distinguish btw the two)
2. Positive - you met the standard - the goal could be easy to easy
3. Negative - you did not meet the standard - the goal was set to high, technology failed
4. Most important is how do we correct

Question 7

How to make the control process effective

4 Ways to make the process for effective

Answer 7

1. Cost effective - spend less then we make (exception - cost benefit)
   2 .Timely - prevent something, give instructions
2. Relevant info or data - has to pertain to subject matter - what helps you make a decision
3. Must be simple, so everyone can understand

Question 8

Breakeven Analysis: Data-

Answer 8

Applying mathematics to make decisions
Quantitative Analysis
Operations Research

Question 9

Breakeven Analysis Formula

Answer 9

BEP = FC / P-VC
BEP = units not dollars
FC = Fixed cost, has to be there 
P= Price per unit 
VC = Variable cost, what changes

Question 10

Managing data to manage the revenue cycle -

Answer 10

What do these numbers mean to you ?

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