Managers Can Presume a Causal Relationship and Specify Appropriate Action

question 32

Multiple Choice

Managers can presume a causal relationship and specify appropriate action when:

• A)results are compared with the standards set in the step of setting performance standards.
• B)linkages between inputs and outputs are clear.
• C)management evaluates feedback data to find out whether there is any deviation from the plan.
• D)information is obtained in measured form.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Investment Turnover

A ratio that measures the efficiency of a company in using its investments to generate sales revenue, reflecting how effectively assets are being utilized.

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses like wages, depreciation, and cost of goods sold.

Invested Assets

Items acquired or bought with the intention of earning income or profit.