Management by ________ Is the Practice That Directs Executive Attention

question 162

Multiple Choice

Management by ________ is the practice that directs executive attention to large budget variances.

• A)control
• B)objective
• C)exception
• D)analysis

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an entity, typically involving the inflow of cash from investors or banks.

Indirect Method

A technique used in the statement of cash flows to adjust net income for the effects of non-cash transactions and changes in working capital to determine cash flow from operating activities.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as sales, purchasing, payroll, and other routine business transactions.

Indirect Method

A way of reporting cash flows from operating activities on the statement of cash flows, adjusting net income for changes in non-cash accounts.