Which of the Following Statements Is TRUE of Performance Reporting

question 139

Multiple Choice

Which of the following statements is TRUE of performance reporting?

• A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information.
• B) Managers should not be held accountable for uncontrollable variances.
• C) Only unfavorable variances in the reports should be explained.
• D) Every variance, regardless of magnitude, must be investigated by the managers.

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Definitions:

Semantic Knowledge

A kind of declarative knowledge that includes factual information (“There are 50 states in the U.S.”), rules (“Ride a bicycle on the right-hand side of the street”), and concepts (“Green is a color”).

Episodic

Pertaining to or consisting of separate events or incidents, often used to describe memory or narrative structure.

Procedural

Relating to the process by which something is done or accomplished, often used in context with rules or methods in various fields.

Information Processing

The mental activities involved in the understanding, processing, and storage of information.