Which of the Following Is True of the Tools for Control

question 41

Multiple Choice

Which of the following is true of the tools for control?

• A) Budgets and reports are rarely used control tools in most organizations.
• B) Supervisors should ensure that performance reports are elaborate and convoluted.
• C) The inability to control through personal observation is a challenge of supervising employees who work at home.
• D) Personal observations cannot help supervisors understand the activities behind the numbers in reports.

---

Definitions:

Incremental Costs

The additional costs incurred if a company increases its production or level of operations.

Direct Materials

Raw materials directly used in the production of goods, easily traceable to the product being manufactured.

Operating Income

The profit realized from a business's core operations after deducting operating expenses such as wages and cost of goods sold, but before taxes and interest.

Direct Labor

The cost of wages for those workers directly involved in the production of goods or services, not including support staff.