A Comprehensive Management Accounting and Control System Regarding Manufacturing Overhead

question 120

Multiple Choice

A comprehensive management accounting and control system regarding manufacturing overhead costs:

• A) Includes nonfinancial but not financial performance indicators.
• B) Relies on direct managerial observation rather than a formal system for cost-control purposes.
• C) Provides information for strategic but not operational control.
• D) Provides financial-control information to operating personnel, while both financial and nonfinancial performance indicators to managers.
• E) Includes both financial performance indicators as well as nonfinancial performance indicators.

---

Definitions:

Due Diligence Defense

A legal defense used in securities law, asserting that all required investigations and disclosures were made appropriately.

Audited Financial Statements

Financial reports that have been reviewed and verified by an independent auditor for accuracy and compliance with accounting standards.

Material Fact

A fact that, if known, would influence a party's decision to enter into a contract or transaction.

Administrative Law Judge

An official who presides over court-like hearings for administrative agencies, making decisions on disputes between the agency and individuals.