"Levers of Control," in Addition to a Diagnostic Control System

question 18

Multiple Choice

"Levers of control," in addition to a diagnostic control system, are needed in an organization because ________.

• A) diagnostic controls have been found to lead to poor financial performance
• B) diagnostic controls have no place in a balanced scorecard system
• C) pressure to perform on diagnostic controls may lead to unethical behavior
• D) they are mandated by the Financial Accounting Standards Board

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Definitions:

Bar Graph

A visual depiction of data in which bars of varying lengths represent different values or categories.

Skewed Distribution

A statistical term describing an asymmetry from the normal distribution in a set of data, where the tail on one side of the peak is longer or fatter than the other.

Statistically Significant

A determination that a result from data analysis is unlikely to have occurred by chance, suggesting a real effect or difference is present.

Standard Deviations

A measure of the dispersion or variability within a set of numerical data, indicating how much variation there is from the average (mean).