The Basic Control Process Begins With

question 6

Multiple Choice

The basic control process begins with:

• A) either benchmarking or keystoning
• B) the establishment of clear standards of performance
• C) the comparison of actual performance to expected performance
• D) problem identification
• E) determining what corrective action will be if actual performance does not equal or exceed expected performance

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Definitions:

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.

Ending Inventory

The worth of products on hand for sale at the conclusion of an accounting cycle, determined by adding the starting inventory to acquisitions and then subtracting the cost of goods sold.

Merchandise Inventory

Goods or products that a company holds for the purpose of sale to customers in the ordinary course of business.