A Cost Management System

question 10

Multiple Choice

A cost management system

• A)is finalized when the information currently being produced is the same as the information currently desired.
• B)can be generically designed to fit the information needs of the majority of domestic (but not global)organizations.
• C)must be continuously improved to adapt to changes in an organization's internal and external environment.
• D)that has been appropriately designed from gap analysis,does not need to be changed unless there is a change in organizational management or culture.

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Definitions:

Residual Variance

The variance of the error terms in a regression model, representing the amount of variation that cannot be explained by the model's inputs.

Alpha/Beta

Measures in finance; Alpha represents the strategy's returns above the benchmark, whereas Beta indicates the volatility relative to the market.

Sharpe Measure

A measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy, calculated as the difference between the asset's returns and the risk-free rate, divided by the asset's standard deviation.

Forecasting Ability

The capability to predict future trends, prices, or outcomes based on historical data, trends, and analysis.