The Chapter Discussed Three Major Ideas from Management and Their

question 47

Multiple Choice

The chapter discussed three major ideas from management and their relationship to accounting information systems: COSO's enterprise risk management framework, business process management and expectancy theory.Which of the following statements is most true?

• A)The three ideas are unrelated to one another.
• B)The generalized model of business process management could be used to develop a system for managing risk.
• C)The generalized model of business process management should be used to analyze employee motivation.
• D)All organizations should include the risk of non-motivated employees in their COSO risk management plan.

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the resources they consume.

Overhead Costs

Indirect costs of running a business that are not directly tied to a specific product or service, such as rent, utilities, and insurance.

Product Costing

The method used to assign costs to a product, including direct materials, direct labor, and overhead expenses.

Cost Driver

An activity or factor that incurs costs based on its level of use or consumption, influencing the total cost of production.