A Cost Report Showing Budget Overruns on a Project Completed

question 78

Multiple Choice

A cost report showing budget overruns on a project completed during the prior month is an example of which type of control?

• A) cost control
• B) preliminary control
• C) feedback control
• D) steering control
• E) managerial control

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Definitions:

Adjusting Entries

Journal records created during the final part of an accounting period for the purpose of attributing revenues and expenses to the timeframe in which they actually took place.

Correct Balances

Accurate financial figures in accounting records that match the real-world values of assets, liabilities, and equity.

Accounting Period

A specific time frame for which financial records are tracked and reported, typically a year or quarter.

Accrual Basis

An accounting method where revenue is recorded when earned and expenses are recorded when incurred, regardless of when cash transactions occur.