In the Context of the Control Process, Which of the Following

question 3

Multiple Choice

In the context of the control process, which of the following statements is true about measuring actual performance?

• A) It is the point where performance objectives identify key results that one wants to accomplish.
• B) It involves a situation where outputs are difficult or expensive to measure.
• C) It is the point where output standards and input standards are used to carefully document results.
• D) It is the point where past experience becomes the baseline for evaluating current performance.
• E) It is the practice of giving attention to situations that show the greatest need for action.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Initial Value Method

A method of accounting in which an investment is initially recorded at its cost without adjusting for changes in the market value over time.

Net Income

The conclusive profit of a corporation once revenue has had taxes and expenses subtracted from it.

Common Stock

A type of equity security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights in some corporate matters.