To Achieve Maximum Benefits at Minimum Cost, a Management Control

question 177

Multiple Choice

To achieve maximum benefits at minimum cost, a management control system must foster:

• A) managerial effort and goal congruence
• B) motivation and responsibility accounting
• C) goal congruence and employee motivation
• D) responsibility accounting and managerial effort

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Definitions:

Physical Flow

This term refers to the actual movement of goods in and out of a warehouse or production facility.

Fiscal Year

A 12-month period used for calculating annual financial statements in businesses and other organizations, differing from the calendar year.

Specific Identification

An inventory costing method where the cost of each specific item in inventory is identified and assigned to that item.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.