When Managers Are Measuring Performance, Comparing It to Objectives, Implementing

question 72

Multiple Choice

When managers are measuring performance, comparing it to objectives, implementing necessary changes, and monitoring progress, which function of management are they performing?

• A) Planning
• B) Controlling
• C) Organizing
• D) Leading

Apply depreciation and amortization adjustments in consolidation for assets sold between affiliated companies.

Recognize the need to eliminate dividends paid within the group in preparing consolidated financial statements.

Understand the differences between the parent-company extension method and the entity method in consolidated financial statements.

Know how to calculate the non-controlling interest in earnings with necessary adjustments for both realized and unrealized profits from sales.

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Definitions:

Positive Inequity

A perception where an individual believes they receive more rewards in comparison to their inputs than others.

Negative Inequity

A perception that one's inputs are greater than the outputs received, especially in comparison to others, leading to feelings of unfairness.

Instrumentality

The perceived relationship between performance and the attainment of certain outcomes, an important concept in motivation theories such as expectancy theory.

High Performance

A state of operating with maximum efficiency and effectiveness, often surpassing expected standards.