Traditional Financial Control Systems Have Recently Been Criticized Because

question 165

Multiple Choice

Traditional financial control systems have recently been criticized because:

• A) They use flexible, not static, budgets.
• B) They generally lead to goal-congruent behavior on the part of managers.
• C) They focus more in improving basic business processes than short-term financial results.
• D) They fail to incorporate nonfinancial performance indicators into the evaluation process.
• E) They provide performance data on a real-time basis.

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Definitions:

Property Values

The worth of real estate as determined by market conditions and the property's condition, location, and other factors.

Renovates

The process of improving or updating a building, room, or structure to make it more attractive or functional.

Marginal Social Benefit

The additional gain to society as a whole from producing or consuming one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one more unit of a good or service, including both private costs and externalities.