In Designing an Effective Management Control System for a Multinational

question 5

Multiple Choice

In designing an effective management control system for a multinational corporation,the accountant should measure factors appropriate for each unit's level of responsibility. Which of the following measures would be appropriate for evaluating the performance of a profit center?

• A)return on investment
• B)residual income
• C)EBIT
• D)all of the above

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Definitions:

Emotional Intelligence

The ability to recognize, understand, manage, and reason with emotions in oneself and others.

Salovey and Mayer

Two psychologists who introduced the concept of emotional intelligence in 1990, proposing a model that emphasized the ability to monitor one’s own and others' feelings and emotions, to discriminate among them, and to use this information to guide one's thinking and actions.

Own and Other's Feelings

Own and Other's Feelings involves the ability to recognize, understand, and respond to one's own emotions as well as those of others, a key component of emotional intelligence.

Culture-Fair

Tests or assessments designed to be free of cultural biases, aiming to measure intelligence or abilities regardless of the test-taker's cultural or socio-economic background.