When Actual Performance Falls Outside of an Acceptable Range of Variation

question 48

Multiple Choice

When actual performance falls outside of an acceptable range of variation, it is termed a(n) _________.

• A)large deviation
• B)acceptable deviation
• C)insignificant deviation
• D)significant deviation

---

Definitions:

Cash Payments

Refers to transactions where money is physically paid out or deducted from an account to settle obligations or acquire goods and services.

Operating Cash Flow

Cash generated from a company's regular business operations, excluding investment and financing activities.

Accounts Receivable

Money owed to a business by its customers for products or services that have been delivered but not yet paid for.

Long-Term Asset

Assets owned by a company that are intended for use over a long duration, typically more than one year, such as real estate, machinery, and patents.