The Purpose of Operating Control Is to Ensure That a Company

question 54

True/False

The purpose of operating control is to ensure that a company achieves the sales,profits,and other goals set out in its annual plan.

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Definitions:

Activity Variance

The difference between the budgeted cost for an activity level and the actual cost incurred, indicating deviations from planned performance.

Net Operating Income

A company's income after operating expenses have been deducted, but before income taxes and interest expenses are taken into account.

October

The tenth month of the year in the Gregorian calendar, often associated with autumn in the Northern Hemisphere.

Refurbishment Company

A business specializing in the process of renovating or restoring products to their original condition or better.