The Control That Permits Managers to Use Information on Past

question 19

Multiple Choice

The control that permits managers to use information on past performance to bring future performance in line with planned objectives is referred to as

• A) concurrent control.
• B) feedback control.
• C) feedforward control.
• D) outcome control

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Definitions:

Decentralization

The distribution of decision-making power away from a central authority within an organization to lower levels or divisions.

Controllable Costs

Expenses that management can directly or indirectly control or influence in the short term, such as supplies and advertising.

Direct Expense

Costs that can be directly traced to a specific product, service, or department.

Departmental Contribution

The amount of revenue generated by a specific department minus the direct costs associated with that department.