What Is the Purpose of a Management Control System

question 102

Multiple Choice

What is the purpose of a management control system?

• A) To align more closely the interests of the manager and the interests of the organization.
• B) To allow individuals to obtain business experience.
• C) To define the performance measures for employees.
• D) To focus on the well-being of employees.

---

Definitions:

CCA Class

Stands for Capital Cost Allowance Class, which is a categorization used in Canadian tax law for the purpose of calculating depreciation for tax purposes.

Borrowed Money

Funds that are loaned to an individual or business with an obligation to repay the amount plus interest.

Operating Lease

A lease agreement allowing the use of an asset without ownership, typically involving shorter-term rentals.

Residual Value

The estimated value that an asset will have at the end of its useful life.