Operational Control Systems Can Be Distinguished from Financial Control Systems

question 176

Multiple Choice

Operational control systems can be distinguished from financial control systems:

• A) In the time horizon: financial-control systems have a long-term perspective.
• B) Because they focus on the control of basic business processes.
• C) Because such systems rely on the use of flexible, not static, budgets.
• D) Because they focus on explaining the total operating income variance for a period.
• E) Because they do not include nonfinancial performance indicators.

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Definitions:

Evaluative Criteria

The characteristics, attributes, or dimensions that consumers use to compare and judge the merits and drawbacks of products and services.

Internal Search

The cognitive process that consumers engage in by recalling stored information from memory to make a decision.

External Search

The process of seeking information from outside resources, such as consumer reports or expert opinions, before making a purchase decision.

Recollection Search

The act of retrieving memories or information from one's own experiences to make decisions or solve problems.