Which of the Following Is a Characteristic of a Management

question 20

Multiple Choice

Which of the following is a characteristic of a management control system?

• A) It aids and coordinates the process of making decisions.
• B) It encourages short-term profitability and maximizing net income.
• C) It helps individuals throughout the organization to act independently and maximize the profitability of their departments.
• D) It deals with coordinating planning across the organization and is not concerned with behavioral aspects of management like employee motivation.

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Definitions:

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and written off as a loss.

Quality of Receivables

An assessment of the likelihood that the receivables will be collected on time, reflecting the creditworthiness of a company's customers.

Likelihood of Collection

The probability that debts owed to a company will be paid by its debtors.

Materiality Constraint

An accounting principle that states financial information is material if its omission could influence decisions.