The Outcome of the Control Process Is the Ability to

question 22

Multiple Choice

The outcome of the control process is the ability to

• A)measure performance accurately and regulate organizational efficiency and effectiveness.
• B)formulate effective business strategies and plan the allocation of resources.
• C)attract customers by producing goods and services more cheaply than any competitor.
• D)motivate employees to perform at a high level.
• E)decide what organizational goals to pursue.

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Definitions:

AASB 136

The Australian Accounting Standards Board standard related to the impairment of assets, requiring testing for impairment to ensure asset values are not overstated.

Impairment Losses

Financial write-downs recognized when the carrying amount of an asset exceeds its recoverable amount, indicating that the asset has suffered a decline in value that is not recoverable.

Accumulated Impairment

The total sum of impairment losses recognized on an asset, reducing its carrying amount on the balance sheet.

Impairment Losses

Impairment losses are accounted for when the carrying value of an asset exceeds its recoverable amount, indicating that the asset is not expected to generate sufficient future economic benefits.