When Used for Performance Evaluation,periodic Internal Reports Based on a Responsibility

question 44

Multiple Choice

When used for performance evaluation,periodic internal reports based on a responsibility accounting system should not

• A)be related to the organization chart.
• B)include allocated fixed overhead.
• C)include variances between actual and budgeted controllable costs.
• D)distinguish between controllable and noncontrollable costs.

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Definitions:

Excess Reserves

Funds that banks hold over and above the required minimum reserves set by the central bank, available for lending or investment.

United States Bonds

United States Bonds are debt securities issued by the U.S. Department of the Treasury to finance government spending as an alternative to taxation.

Money Supply

The complete sum of money available within an economy at a designated time frame.

Federal Reserve Bank of New York

One of the 12 Federal Reserve Banks in the United States, playing a key role in monetary policy, financial supervision, and economic research.