Compstat Is an Analytical ______ System That Was Developed to Better

question 1

Multiple Choice

Compstat is an analytical ______ system that was developed to better understand crime patterns and to apply this knowledge to solutions.

• A) transparency
• B) accountability
• C) integrity
• D) feasibility

Utilize financial ratio analysis to compare company performance.

Recognize the significance of the statement of cash flows.

Apply the Du Pont identity to deconstruct a firm's return on equity.

Distinguish between types of financial ratios: asset management, profitability, long-term solvency, and market value ratios.

---

Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs accurately.

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.