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Refer to the Scenario Below to Answer the Questions That

question 51

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
Designing a Control System (Scenario)
Gina realizes her department needs to make some changes in its control system.The department is one of five in her division,and she is not sure which approach will work best for the organization.She could base her department's performance on its distinct product,making it a profit centre and evaluating it against overall company results.She could also make better use of the policies,regulations,and procedures that are already in place.To date,Gina has not strictly enforced many of the regulations established by the head office because her department is self-regulating.The work groups set their goals and insure those goals are achieved.Everyone is well aware of the expected standards and work behaviours,and there is little tolerance for workers who do not meet the group norms.
-If Gina establishes her department as a profit centre,she will be using ________ control.

Definitions:

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.

Available-for-sale Securities

Financial assets that are neither held for trading nor intended to be held to maturity, and can be sold in response to needs for liquidity or changes in interest rates.

Trading

The act of buying, selling, or exchanging financial instruments, commodities, or other assets in financial markets or over-the-counter.

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.