To Achieve Maximum Benefits at Minimum Cost, a Management Control

question 23

Multiple Choice

To achieve maximum benefits at minimum cost, a management control system must

• A) look at the short term only.
• B) motivate managers with quarterly bonuses based on performance.
• C) foster goal congruence and managerial effort.
• D) be the same as the financial accounting system.

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Definitions:

Cost of Goods Sold

Direct expenditures involved in producing the merchandise a business sells.

FIFO Cost Flow

An inventory valuation method where the first items purchased are the first ones to be sold, assuming costs rise over time.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to the beginning inventory and subtracting the cost of goods sold.

Laptop Computers

Portable personal computers designed for mobile use, characterized by a screen and a keyboard.