The Managerial Function of Controlling

question 94

Multiple Choice

The managerial function of controlling

• A) is performed only by the controller of a company.
• B) is only applicable when the company sustains a loss.
• C) is concerned mainly with operating a manufacturing segment.
• D) includes performance evaluation by management.

---

Definitions:

Contribution Margin

The contribution margin is the amount by which the sales revenue of a product or service exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Selling Price

The amount of money customers pay for a product or service.

CVP Model Assumptions

Assumptions underlying the Cost-Volume-Profit analysis, including constant unit selling prices, variable costs per unit, and total fixed costs.

Product Mix

The variety of products a company offers to its customers, encompassing breadth, depth, and diversity of the product lines.