A Manager Controls the Plan When He or She

question 16

Multiple Choice

A manager controls the plan when he or she

• A) creates a vision statement.
• B) creates a mission statement.
• C) establishes a budget to pay for the action plan.
• D) checks to see how well goals are being attained.

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Definitions:

Payback Period

The time it takes for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Simple Rate of Return

Is the ratio of net annual cost savings to the initial investment, used to evaluate investment efficiency.

Cash Operating Costs

Expenses related directly to the operations of a business that are paid out in cash, excluding non-cash expenses like depreciation.

Useful Life

The estimated duration a fixed asset is expected to be useful for the purpose it was acquired, impacting depreciation calculation.