The Four Key Behavioral Considerations in Management Accounting and Control

question 108

Multiple Choice

The four key behavioral considerations in management accounting and control system design include all of the following EXCEPT:

• A)integrating the organization's pay scale.
• B)using a mix of short- and long-term qualitative and quantitative performance measures.
• C)empowering employees to be involved in decision making and MACS design.
• D)developing an appropriate incentive system to reward performance.

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Definitions:

Regression Model

A statistical model that estimates the relationship between a dependent variable and one or more independent variables, often used for prediction and forecasting.

Correlation Coefficient

A numerical value indicating how much two or more variables change in relation to each other.

Linear Association

A type of relationship between two variables where the graph of their relationship is a straight line, indicating a proportional increase or decrease.

Least Squares Regression

A method to determine the line of best fit by minimizing the sum of squares of the differences between observed and predicted values.