When Controls Are Confusing or Too Sophisticated for Employees,a Supervisor

question 7

Multiple Choice

When controls are confusing or too sophisticated for employees,a supervisor should:

• A)create complex charts and graphs to explain the controls in more detail.
• B)stop using controls altogether.
• C)attempt to help his or her employees understand them.
• D)devise new controls that meet departmental needs and are understandable to everyone who uses them.

Calculate the desired ending inventory for materials required in production.

Determine the budgeted direct labor cost per unit for products.

Calculate total material costs based on production needs and material cost per yard or kilogram.

Understand the flow of cash payments for raw materials and their impact on budgeted accounts payable.

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Definitions:

Meeting of the Minds

An agreement between parties on the terms of a contract, demonstrating mutual consent and understanding.

Unilateral Mistake

An error made by one party in a contract that does not affect the other party's understanding or agreement.

Misunderstanding

A situation where the intended meaning of a communication is not correctly perceived by one or more parties.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading to a contract or transaction.