The Identification of the Origin of Controllable Costs and Income

question 16

Multiple Choice

The identification of the origin of controllable costs and income allows at least one manager to be responsible for the costs, and:

• A) results in minimising costs and maximising profits.
• B) results in more efficient operations.
• C) makes the manager accountable for each item on a performance report.
• D) all of the above are correct.

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Definitions:

Market Price

The contemporary price for purchasing or selling an asset or service.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces its price, without changing the shareholders' equity.

Common Stock

A type of equity security representing ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Shares Outstanding

This key term represents the aggregate number of issued shares of a corporation held by investors, including restricted shares owned by the company’s officers and insiders.