Traditional Financial Control Systems Have Recently Been Criticized Because

question 165

Multiple Choice

Traditional financial control systems have recently been criticized because:

• A) They use flexible, not static, budgets.
• B) They generally lead to goal-congruent behavior on the part of managers.
• C) They focus more in improving basic business processes than short-term financial results.
• D) They fail to incorporate nonfinancial performance indicators into the evaluation process.
• E) They provide performance data on a real-time basis.

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Definitions:

Sale of Goods Act

Legislation governing the sale and purchase of goods, ensuring rights, and obligations of both buyers and sellers are adhered to.

Purchase Order

An official document issued by a buyer committing to pay the seller for the supply of specific goods or services.

Signed

Marked with a signature to show agreement, consent, or acknowledgement.

Act of God

An event caused by natural forces beyond human control, such as earthquakes, floods, or hurricanes, that is not the fault of any individual.