By Convention, Short-Term Financial Control Is Accomplished by All the Following

question 110

Multiple Choice

By convention, short-term financial control is accomplished by all the following except:

• A) Comparing actual to budgeted financial results.
• B) Calculating a series of cost and revenue variances at the end of the period.
• C) The use of flexible budgets and standard costs.
• D) Explaining the total operating-income variance for a given period.
• E) The use of productivity analysis.

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Definitions:

Income Statement

An Income Statement is a financial document that shows a company's revenues and expenses, leading to net profit or loss over a specific period.

Balance Sheet

An accounting report that presents the value of a corporation's assets, obligations, and equity of its investors as of a particular moment.

Operating Activities

Activities that involve the primary operations of a company, such as selling products and providing services.

Statement Of Cash Flows

A financial statement that provides a summary of a company's cash inflows and outflows over a specific period.