If a Company Wanted to Evaluate the Manager's Ability to Control

question 37

Multiple Choice

If a company wanted to evaluate the manager's ability to control costs, the company would probably look at the:

• A) Performance margin.
• B) Responsibility margin.
• C) Contribution margin.
• D) None of the above.

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Definitions:

Cash Budget

A financial plan that projects future cash flow by estimating incoming cash receipts and outgoing cash payments.

Loans Outstanding

The total amount of borrowed money that is still owed to lenders.

Budgeted Purchases

The estimated amount of purchases a company plans to make in a future period, often part of a budgeting process.

Budgeted Ending Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the end of a financial period.