The First Step in Controlling Is To

question 133

Multiple Choice

The first step in controlling is to:

• A)take corrective action
• B)measure performance against standards
• C)monitor goals
• D)explain the meaning of goals
• E)establish performance standards

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Definitions:

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by using the highest and lowest levels of activity.

Office Expense

Refers to the costs associated with running an office, including rent, supplies, and utilities.

Escrow Completed

The point at which all conditions of a real estate transaction are met and the title of the property is transferred from the seller to the buyer.

Monthly Fixed Cost

Regular expenses that do not vary with production level or sales volume, incurred on a monthly basis.