Essential to Developing a System That Will Monitor and Control

question 27

Multiple Choice

Essential to developing a system that will monitor and control the implementation of plans developed in the formal planning process is the establishment of

• A) Sanctions for improper performance.
• B) Control systems.
• C) A "control leader."
• D) Contingency plans for various scenarios.
• E) Strategic planning motives.

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Definitions:

Departmental Net Income

The profit or loss generated by specific departments within a business, calculated after allocating direct and indirect costs.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers or departments.

Maintenance Department

A functional area within an organization responsible for maintaining and repairing the organization's equipment, facilities, and systems to ensure they are safe and efficient.

Operating Departments

Divisions or units within a business that are responsible for carrying out the primary business activities.