Application of Designing a Control System

question 143

Multiple Choice

Application of Designing a Control System
Gina realizes her unit needs to make some changes in its control system. However, she is uncertain which will work best for her organization. They are just one unit among five. She could base her unit's performance on their distinct product, and turn her unit into a profit center and evaluate against the company total. She could also use more heavily the rules, policies, regulations, and procedures already in place. She has not strictly enforced many of the regulations established by the home office. Part of the reason for this is that her unit is fairly self- regulating. The work groups set their goals and insure those goals are attained. Little latitude is allowed for a worker who does not meet the group norms.
-As Gina moves up the organizational hierarchy to higher positions and levels in the company, she finds that

• A)there are more extensive and comprehensive controls.
• B)managers rely on formal, impersonal rules and regulations.
• C)managers monitor only the important activities in the unit.
• D)many criteria are used in the design of control systems.

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Definitions:

Replacement Proposal

A plan to replace an existing asset or system with a new one, often evaluated based on cost, efficiency, and potential benefits.

Initial Cash Flows

The initial amount of money invested or generated at the start of a project or investment.

Tax Effects

Tax effects refer to the impact of tax laws on an individual's or company's financial performance and decisions.

After Tax

Refers to the net income after all applicable taxes have been subtracted.