A Well-Designed Management Control System Uses Information from ________

question 23

Multiple Choice

A well-designed management control system uses information from ________.

• A) internal sources only as they are the most reliable sources of information
• B) external sources only as they are more dynamic and future oriented
• C) both internal and external sources as a wide range of information is required
• D) external sources only as they are the most reliable sources of information

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Definitions:

Ratio Comparison

A method of analysis where financial ratios of a company are compared to industry benchmarks or the company's historical figures to assess performance.

Credit Manager

A professional responsible for granting credit to customers and managing the credit risk for a company.

Quick Ratio

A liquidity indicator that measures a company’s ability to pay off its current liabilities without relying on the sale of inventory by dividing liquid assets by current liabilities.

Return on Equity

A measure of a corporation's profitability relative to stockholders’ equity, indicating how effectively management uses investments to generate earnings growth.