The First Step That Managers Need to Take to Achieve

question 49

Multiple Choice

The first step that managers need to take to achieve control over organizational activities is to:

• A) measure actual performance.
• B) establish measurable standards of performance.
• C) perform tests to confirm consistency.
• D) compare actual performance against established goals.
• E) evaluate the results and take corrective action.

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Definitions:

Net Method

An accounting practice where discounts for early payment are considered directly in the invoice price, reducing the recorded sale and purchase amounts if the discount is taken.

Periodic Inventory System

An alternative phrasing for the Periodic Inventory Method, emphasizing it as a system of managing and accounting for inventory in discrete time periods, typically annually.

Journal Entries

The method by which financial transactions are recorded in a company's accounting records, detailing debits and credits to specific accounts.

Voucher

A record that acts as proof of a transaction and permits a payment to be made.