The Process by Which Managers Monitor and Regulate the Organization

question 101

True/False

The process by which managers monitor and regulate the organization in order to determine if the organization is operating efficiently and effectively is known as controlling.

---

Definitions:

Cost Driver

Any factor which causes a change in the cost of an activity, influencing the costs of business operations directly.

High-low Method

An approach used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Electricity Cost

The amount charged for the consumption of electric power, which can vary based on factors like usage, time of use, and geographical location.

Machine Hours

A measure of production time, calculated by counting the number of hours machines are operating.