Managerial Accounting Includes the Controlling Function

question 30

Multiple Choice

Managerial accounting includes the controlling function. Which of the following items would be part of the controlling function of a business's managerial accounting?

• A) Comparing actual performance to previously budgeted amounts
• B) Creating detailed budgets
• C) Devising marketing and production plans
• D) Setting product prices

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Definitions:

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Depreciated

The reduction in the value of an asset over time, typically due to wear and tear or obsolescence.

Tax Rate

The percentage at which an individual or corporation is taxed.

Depreciated

Depreciated refers to the decrease in value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to allocate the cost of an asset over its useful life.