Hanover Insurance Set Up a Management Information System That Gives

question 13

Multiple Choice

Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Hanover is utilizing ________ control.

• A) feedforward
• B) feedback
• C) bureaucratic
• D) MBO

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Definitions:

Costs Paid

Expenses that a company has incurred and settled through payment.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is actually received or paid out, ignoring receivables and payables.

Expense Recognition

The accounting principle that expenses should be recognized in the period in which they are incurred, regardless of when payment is made.

Economic Life

The expected period during which an asset remains useful to a particular entity or project, often affecting its depreciation schedules.