With Regard to the Visible or Hidden Issue, Most Executives

question 10

Multiple Choice

With regard to the visible or hidden issue, most executives agree that

• A) the SEC should regulate whether or not companies make their strategic information visible.
• B) some strategic information should remain confidential to top managers.
• C) a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle."
• D) the potential benefit of improved employee and stakeholder motivation and input is not worth the risk of rival firms easily knowing and exploiting a firm's strategies.
• E) keeping strategies secret from employees and stakeholder will likely improve communication, understanding, and commitment.

Understand the concepts of controllable and uncontrollable costs.

Recognize the importance of classifying costs for performance evaluation, budgeting, and financial management.

Identify the components and functions of a management accounting system.

Understand direct, indirect, fixed, and variable costs and how they relate to manufacturing.

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Definitions:

Closing Entries

These are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

Inventory

The complete quantity of products and materials a company possesses for the purposes of sale or utilization in manufacturing processes.

Perpetual Inventory System

An inventory management method where stock levels are updated in real-time with every sale or purchase.

Merchandise

Goods that are bought and sold as part of business operations, typically in a retail or wholesale setting.