An Analytical Technique Used by Management to Focus on the Most

question 65

Multiple Choice

An analytical technique used by management to focus on the most significant variances and give less attention to the areas where performance is satisfactory is known as:

• A) Controllable management.
• B) Management by variance.
• C) Performance management.
• D) Management by objectives.
• E) Management by exception.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the checking account ledger but have not yet been cashed or cleared by the bank.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure consistency and accuracy of the figures.

NSF Check

A check that has been refused by the bank due to insufficient funds in the account it was drawn against.

Bank Service Charge

Fees charged by a bank for account services, such as account maintenance, transactions, and other banking services.