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:

Cash Outflow

Money or value leaving a business, typically through expenses, purchases, or other financial activities.

Selling Equipment

The process of disposing of company-owned machinery or equipment, usually to generate cash or reduce assets.

Book Value

Cost of equipment less accumulated depreciation.

Loss

The result when a company's expenses exceed its revenues during a specific period, indicating a decrease in net assets.