Application of Qualities of Effective Control Systems

question 140

Multiple Choice

Application of Qualities of Effective Control Systems
Jared has been hired to establish a control system for SRP Inc. Jared knows several decisions must be made before the control system can be implemented. Several contingencies must also be considered. One of the first decisions that must be made is where to place the controls and what needs to be controlled. Jared also knows the organization is relatively small and will be for some time, and that management intends to decentralize extensively. Furthermore, management has indicated that
if- then guidelines are to be implemented. Jared looks forward to designing a system that will work well for the company for years to come.
-Controls should be implemented for

• A)areas where variations are unlikely to occur.
• B)areas where variations will cost little.
• C)all critical activities, operations, and events.
• D)everything that goes on in the organization.

---

Definitions:

Eurodollar Market

A market for trading U.S. dollars in foreign countries.