Good Procedures for Cost Control Include All of the Following

question 21

Multiple Choice

Good procedures for cost control include all of the following except:

• A)Systems that accurately capture data collection and other costs associated with the project on a daily basis.
• B)Policies and practices that quickly identify overbudget situations and then find causes and seek solutions.
• C)Daily reporting of costs to the communication liaison.
• D)Policies and practices that find and account for underbudget situations.
• E)Policies and practices in the research organization that require the liaison to communicate the budget picture to clients and to senior managers at the
• Research company.

Identify the significance of external regulations and standards, including the Sarbanes-Oxley Act and accounting principles developed by FASB.

Distinguish between internal and external users of accounting information and their informational needs.

Recognize the importance of proper measurement and recording of economic data in accounting.

Understand the impact of business transactions on financial statements, including assets, liabilities, and owner's equity.

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Definitions:

Measurable Accomplishment

A specific, quantifiable achievement that reflects progress towards a goal or an objective.

Excel

A spreadsheet program developed by Microsoft used for data organization, analysis, and manipulation.

Capital Gain

The profit earned from the sale of assets or investments exceeding the purchase price.

Venture Investors

Individuals or firms that provide capital to start-up companies with high growth potential in exchange for equity.