Which of the Following Would You Prefer

question 24

Multiple Choice

Which of the following would you prefer?

• A) four hundred dollars to be received in nine years when rates are 8 percent
• B) two hundred ten dollars today
• C) five hundred dollars to be received in 12 years when rates are 8 percent
• D) five hundred dollars to be received in 12 years when rates are 9 percent

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Definitions:

Planning and Control

Processes used by management to establish objectives, execute plans to meet those objectives, and monitor progress.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information about different areas of responsibility within an organization.

Responsibility Centers

Divisions or units within an organization for which managers are accountable for certain activities or financial outcomes.

Management by Exception

A management strategy where only significant deviations from expected outcomes are addressed, focusing leaders' attention on the most important issues.