Which of the Following Is One of the Four Basic

question 6

Multiple Choice

Which of the following is one of the four basic questions used in the balanced scorecard?

• A) How do employees see us?
• B) Can we continue to remain profitable?
• C) How do we look to shareholders?
• D) Which areas need improvement?

Distinguish between cost centers and profit centers and their impact on organizational structure and performance evaluation.

Explain the concept of a responsibility accounting system and its role in organizational accountability and performance measurement.

Understand the operational distinctions between periodic and perpetual inventory systems.

Recognize the impact of inventory cost flow assumptions (LIFO, FIFO, and weighted average) on financial statements.

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Definitions:

Accounts Payable

The amount a company owes to suppliers for items or services purchased on credit.

Accrued Liabilities

Liabilities that have been incurred (i.e., they represent obligations) but have not yet been paid or recorded through the normal invoicing process.

Operating Activities

Activities directly related to the core business operations of a company, including sales, service, and production.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future.