Which of the Following Is the First Step in the Process

question 92

Multiple Choice

Which of the following is the first step in the process of controlling?

• A) Monitoring actual performance against set targets
• B) Establishing performance standards
• C) Estimating the fund required for efficient productivity
• D) Providing feedback based on performance

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Definitions:

Variable Component

Part of a cost or expense that varies with changes in activity level, production volume, or sales.

Fixed Component

The portion of a cost that remains constant regardless of the level of activity or output.

Overhead Efficiency

A measure of how effectively a business uses its overhead costs in the production process, often improving profit margins when increased.

Overapplied

In cost accounting, it refers to a situation where the allocated overhead for a period is more than the actual overhead incurred.