A Company Is Said to Lack Control When There Is

question 80

Multiple Choice

A company is said to lack control when there is an) _____, that is the firm's expectations are not established.

• A) inadequacy of ethics in the culture
• B) "shoot the messenger" management
• C) lax top management
• D) absence of policies
• E) lack of periodic reviews

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular item or category.

Direct Materials

The raw materials and components that are directly incorporated into a finished product and can be easily traced to it.

Activity Level

A measure of the volume of production or services that determines the amount of costs incurred in a business.

Administrative Expenses

Costs related to the general operation of a business, such as salaries of executive personnel, accounting, and human resources.