Which of the Following Is NOT One of the Characteristics

question 217

Multiple Choice

Which of the following is NOT one of the characteristics of an effective control system?

• A) Developed and implemented by top management
• B) Flexibility
• C) Integrated with planning
• D) Developed with accurate input
• E) Timeliness

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Definitions:

Payback Period

The duration required for an investment to produce income or cash flows equal to the investment's initial cost.

After-tax Cash Flows

The net cash that remains after all tax-related expenses are deducted, often considered in investment analysis to gauge true profitability.

Liquidation

Liquidation is the process of winding up a company's financial affairs by selling off assets to pay off creditors.

Payback Period

The length of time required to recover the cost of an investment.