Management Control Systems Reflect Only Financial Data

question 41

True/False

Management control systems reflect only financial data.

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Definitions:

Long Service Leave

An employee benefit that grants extended paid leave for workers who have been with their employer for a long period.

Nominal Value

The face value of a bond or stock, which is the amount paid at maturity, not necessarily its current market value.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Termination Benefits

Employee benefits that are payable as a result of either: (a) an entity’s decision to terminate an employee’s employment before the normal retirement date; or (b) an employee’s decision to accept an offer of benefits in exchange for the termination of employment.