The First Step That Managers Need to Take to Achieve

question 80

Multiple Choice

The first step that managers need to take to achieve control over organizational activities is to

• A)measure actual versus perceived performance.
• B)establish measurable standards of performance or goals.
• C)perform tests to confirm consistency.
• D)compare actual performance against established goals.
• E)evaluate the results and take corrective action.

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Definitions:

Expenses

Costs incurred in the process of earning revenue; examples include rent, utilities, and salaries.

Prepaid Rent Expense

An advance payment for rent that is recorded as an asset on the balance sheet until it is consumed or the rental period elapses.

Contra-Asset

An account that offsets an associated asset account on a company's balance sheet, like an allowance for doubtful accounts reducing accounts receivable.

Original Cost

The initial price paid to acquire an asset or service, not accounting for depreciation or adjustments.