When Management Uses Feedback to Take Corrective Action on the Budgets

question 187

Multiple Choice

When management uses feedback to take corrective action on the budgets, which of the following management responsibilities are being fulfilled?

• A)Controlling
• B)Adjusting
• C)Directing
• D)Planning

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Definitions:

Operating Activities

Business activities and transactions related to the core operations of a company, such as sales, merchandise production, and service delivery.

M&M Proposition I

A theory stating, under certain conditions, that the value of a firm is unaffected by how it is financed, whether through debt or equity.

Interest Tax Shield

The reduction in income taxes that results from taking a deductible charge, such as interest on debt, reducing taxable income.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.