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:

Debt-Equity Ratio

A financial ratio that represents the comparative deployment of shareholders' equity and debt in asset financing.

Total Asset Turnover

A financial metric indicating how efficiently a company uses its assets to generate sales revenue.

Profit Margin

A financial ratio that shows the percentage of revenue that surpasses the cost of goods sold, indicating the financial health and profitability of a business.

Net Working Capital

A measure of a company's short-term liquidity, calculated as current assets minus current liabilities.