Which of the Following Statements Is/are False Regarding the Effective

question 89

Multiple Choice

Which of the following statements is/are false regarding the effective use of management control systems?
(A) In general, single rate cost allocations should not be used in management control systems because clear control over the cost being allocated cannot be determined.
(B) The primary reason to use a dual rate allocation system is to focus a manager's performance evaluation on factors under the manager's direct control.

• A) Only A is false.
• B) Only B is false.
• C) Both of these are false.
• D) None of these is false.

---

Definitions:

Reward System

A structured scheme for the distribution of benefits or compensations to individuals based on their contributions, performance, or position.

Distribution Of Stock

The process of allocating shares of a company to investors or shareholders.

Bringing To The Venture

Bringing To The Venture refers to the various contributions, such as resources, skills, knowledge, and capital, that founders or stakeholders provide to support the growth and sustainability of a new business or project.

Release Of Stock

The process of making shares available to the public for the first time, either through an initial public offering (IPO) or another method.