Which of the Following Statements Is True Regarding Timely Performance

question 34

Multiple Choice

Which of the following statements is true regarding timely performance reports?

• A)In many companies, these reports are the major means of providing information to management concerning the actual operations of the companies' internal control systems
• B)These reports should only include monetary data
• C)Since these reports fail to provide feedback to management on the operations of previously implemented internal control procedures, other techniques are needed to provide this feedback to managers
• D)The complexity that a computer introduces into a company's information system will typically prevent the preparation of timely performance reports for the company's management

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Definitions:

Machine Hours

A measure of production time, tracking the total hours that machinery is in operation during the manufacturing process.

Fabrication Department

A division within a manufacturing company where raw materials are assembled or processed to create finished goods.

Procurement Activity

The process undertaken by businesses to acquire goods or services, including planning, selection, and purchasing, to meet its requirements.

Activity Rate

A measure used in cost accounting to assign overhead costs to products or services, based on the amount of activity (such as machine hours or labor hours) consumed.