Which of the Following Statements Best Describes a Characteristic of a Performance

question 62

Multiple Choice

Which of the following statements best describes a characteristic of a performance report prepared for use by a production line department head?

• A)The costs in the report should include only those controllable by the department head.
• B)The report should be stated in dollars rather than in physical units so the department head knows the financial magnitude of any variances.
• C)The report should include information on all costs chargeable to the department, regardless of their origin or control.
• D)It is more important that the report be precise than timely.

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Definitions:

Effective Rate

The actual interest rate that borrowers pay or investors receive on a financial product, once all the compounding periods are factored in, often higher than the nominal rate.

Compounding Interval

The frequency at which interest is applied to the principal sum of a loan or deposit, affecting the total interest earned or paid.

Compounded Nominal Rate

The rate of interest quoted for a period, usually a year, without taking into account the effect of compounding within that period.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effect of compounding interest as opposed to the nominal or stated rate.