An Analytical Technique Used by Management to Focus Attention on the Most

question 31

Multiple Choice

An analytical technique used by management to focus attention on the most significant variances and give less attention to the areas where performance is reasonably close to standard is known as:

• A)Controllable management.
• B)Management by variance.
• C)Performance management.
• D)Management by objectives.
• E)Management by exception.

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Definitions:

End-of-Period Adjustment

Adjustments made to the financial records at the end of an accounting period to ensure they accurately reflect the company's financial status.

Prepaid Expense

Expenditures paid in advance for goods or services to be received in the future, treated as an asset on the balance sheet until used.

Cash Payment

A transaction in which money is paid out or expended in the form of physical currency or through electronic funds transfer.

Management Services

Professional services provided to businesses, often involving strategic advisory, financial management, or operational improvements.