When Monitoring Performance, Supervisors Should Focus on How Actual Performance

question 8

Multiple Choice

When monitoring performance, supervisors should focus on how actual performance compares with the standards they have set. Two concepts useful for maintaining this focus are

• A) Gantt charts and operational planning.
• B) variance and the exception principle.
• C) standards and performance reports.
• D) feedback control and the parity principle.

---

Definitions:

Capital Balance

The amount of money invested in a company by its owners or shareholders, not including any profits or earnings.

Net Assets

The total assets of an entity minus its total liabilities, representing the entity's equity value or net worth.

Income Ratio

A financial metric that compares different streams of income to assess financial performance or profitability.

Capital Balances

Capital balances indicate the amount of equity a partner or shareholder has in a business, reflecting the net contributions and withdrawals, plus their share of profits or losses.