A Management Control System Includes the Techniques to Gather and Control

question 105

Multiple Choice

A management control system includes the techniques to gather and control information to:

• A) motivate employees
• B) make decisions
• C) evaluate performance
• D) All of these answers are correct.

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Definitions:

Reporting Purposes

The reasons or objectives behind collecting and presenting financial or operational information, often dictated by regulatory requirements, investor relations, or internal management needs.

Tax Purposes

Refers to the reasons or intent behind financial or accounting decisions, calculations, or classifications that impact tax liability.

Net Operating Loss Carryforward

A tax provision that allows a company to utilize a taxable loss in one period to offset taxable profits in future periods.

Consolidated Financial Statements

Financial statements that combine the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries.