In Properly Developing Formal Systems at the Team Level That

question 59

Multiple Choice

In properly developing formal systems at the team level that will have the desired impact on employees' performance, the management accountant should recognize any existing informal systems and:

• A) Make plans to eliminate these informal systems.
• B) Simply formalize them into the system being developed.
• C) Try to eliminate them prior to system development.
• D) Not let cultural aspects affect system development.
• E) Consider cultural aspects in development of the formal system.

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Von Neumann-Morgenstern Utility Function

A utility function theory based on expected utility, fundamental in making rational decisions under uncertainty, emphasizing outcomes' probabilities.

Probability

The measure of the likelihood that an event will occur.

Expected Utility

A concept in economics and finance that calculates the anticipated utility of different choices, taking into account the various possible outcomes and their probabilities.