To Be Effective, Control Systems Should

question 104

Multiple Choice

To be effective, control systems should

• A)keep performance standards flexible and easy.
• B)focus on one-way top-down communication.
• C)be acceptable to all stockholders.
• D)use multiple control approaches.
• E)centralize decision making.

---

Definitions:

Equipment

Tangible assets used in the operation of a business to produce goods or provide services, not intended for sale.

Revenue Expenditure

Costs that are expensed in the income statement in the period in which they are incurred, typically related to the day-to-day operating expenses.

New Engine

A recently manufactured or developed engine, often implying improvements or advancements over previous models.

Delivery Vehicle

A category of fixed assets that refers to transportation equipment used by a business for the purpose of delivering goods or services.