The Planning and Control Process Within an Entity Means That

question 31

Multiple Choice

The planning and control process within an entity means that:

• A)business can respond to variances between plans and actual performance.
• B)business is only concerned with actual performance.
• C)plans are followed rigidly at all times.
• D)plans and actual performance do not vary.

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Definitions:

Break-even Sales

The amount of revenue from sales required to cover all fixed and variable costs of operating a business, resulting in no net profit or loss.

Variable Costs

Costs that change in proportion to the activity of a business.

Property Taxes

Taxes levied by local governments based on the assessed value of property, including land and buildings owned.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering the fixed costs.