Refer to the Scenario Below to Answer the Questions That

question 76

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
Types of Control (Scenario)
Sam has not been receiving the information that he needs from his current control system.By the time Sam receives his reports,the activity has been completed and mistakes have already been made.Direct supervision is used extensively on the production floor now,so some activities are corrected before they become costly mistakes.But Sam would like to do better.Ideally,he would like to fix mistakes before they happen and anticipate more of the problems before they occur.
-Sam wants controls that provide information on how effective his planning efforts have been.He would also like controls that can enhance employee motivation.To accomplish both,the best choice is ________ controls.

• A)progressive
• B)feedforward
• C)concurrent
• D)conformance
• E)feedback

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Definitions:

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at two different points in time to analyze financial health and trends.

Net Income

The company's final financial gain once every expense, tax, and cost is subtracted from the gross income.

Operating Activities

Financial transactions and events related to the core business operations of a company.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.