1. Threadless sets an annual budget for the next year after the end of the current years holiday season. The process includes reviewing the current budget and setting goals for the next year. The company then supplements the annual budget with forecasts. What type of budgeting does this resemble?

Multiple Choice

a) external b) credit c) balanced d) incremental e) cash

2. Threadless switched to 100 percent on-demand printing, allowing vendors to print one shirt at a time (instead of bulk) and to send the shirt directly to customers. Threadless never has to actually touch the product, reducing its fixed costs. This is an effective way to manage the companys

Multiple Choice

a) PDCA cycle. b) strategy map. c) supply chain. d) kaizen. e) variable budget.

3. Assume that Jason Macatangay, the companys VP of Finance and Treasurer, changes the company to 100 percent on-demand printing, completely overhauling its supply chain so that performance will meet standards. What step in the control process would this represent?

Multiple Choice

a) establish standards b) measure performance c) compare performance to standards d) take corrective action e) evaluate standards