Types of Control (Scenario)

question 124

Multiple Choice

Types of Control (Scenario)
Sam has not been receiving the information that he needs from his current control system. By the time Sam receives his reports, the activity has been completed and mistakes have already been made. Direct supervision is used extensively on the production floor now, so some activities are corrected before they become costly mistakes. But Sam would like to do better. Ideally, he would like to fix mistakes before they happen and anticipate more of the problems before they occur.
-Sam's reports are an example of ________ control.

• A)applied
• B)feedforward
• C)concurrent
• D)feedback

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Definitions:

Organization's Cost Performance

The measure of how efficiently an organization controls its expenses in relation to its revenues or operational activities.

Job Order Cost Accounting

A system used to calculate the costs associated with a specific job or order, tracking direct labor, direct materials, and overhead.

Service Business

A type of business that provides intangible products or services to its customers rather than selling physical goods.

Factory Overhead Rate

A calculation used in manufacturing to allocate indirect costs, such as utilities and rent, to individual units of production.