For Performance Reports to Be Most Effective for Management by Exception

question 56

Multiple Choice

For performance reports to be most effective for management by exception, they should:

• A)be issued at the same time for all responsibility centers.
• B)be held until the financial statements for the month have been issued.
• C)be issued as soon as possible after the activity or period covered.
• D)show all of the costs associated with the responsibility center being reported about.

---

Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement.

Cash Balance

The amount of cash that a company, individual, or account has available at any given point in time.

Pre-numbered Documents

Documents that are sequentially numbered ahead of time to help ensure completeness and control over processes like inventory, purchasing, and payroll.

Time Lags

Delays between the initiation of an action and its effect or outcome, often encountered in economic policies or financial transactions.