The Purpose of Control Is to Identify Deviations from Goals

question 83

Multiple Choice

The purpose of control is to identify deviations from goals as soon as possible in order to take corrective action.Tracking sales,inventory levels,orders,and customer support are examples of control activities.What type of company data is most important at this level?

• A)Internal data
• B)External data
• C)Vendor data
• D)Administrative data

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Definitions:

Credit Policy

A Credit Policy is a set of guidelines that govern the extension of credit to customers, outlining the criteria for extending credit and the terms of repayment.

Investing Decision

Choices made by individuals or firms regarding the allocation of resources to investment opportunities with the aim of achieving additional income or capital gains.

Bad Debts

Money owed to a company that is unlikely to be paid and written off as a loss.

Credit Policy

The guidelines a company follows to determine credit terms, credit limits, and collection procedures for its customers.