In Order to Promote Goal Congruence, a Manager of an Investment

question 4

Multiple Choice

In order to promote goal congruence, a manager of an investment centre is best evaluated using

• A)standard variable costing income statements.
• B)budgets and standard costs.
• C)return on investment.
• D)economic value added.

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Definitions:

Governmental Fund Financial Statements

Financial reports that detail the financial position and results of operations for the governmental funds of a public entity.

Modified Accrual

An accounting method that combines elements of both cash and accrual accounting, recognizing revenues when they become available and measurable and expenses when incurred.

Capital Assets

Long-term assets such as buildings, land, or equipment, which are used in the operations of a business and are not intended for sale in the regular course of business.

CAFR

Comprehensive Annual Financial Report; a set of government financial statements that goes beyond the requirements of generally accepted accounting principles, including details on all funds and activities.