The Comparing Step in the Control Process Determines ________

question 87

Multiple Choice

The comparing step in the control process determines ________.

• A) a company's relative position in the industry in terms of the standards used
• B) a company's relative position in the industry in terms of performance variances
• C) the variation between actual performance and an external benchmark from a noncompetitor
• D) the variation between actual performance and the standard

---

Definitions:

Effective-Interest Method

A way of calculating the amortized cost of a bond and the amount of interest expense over its life, reflecting the constant rate of interest over the period.

Bond Discount Amortization

The process of gradually writing off the discount on a bond over the life of the bond, reflecting the increase in its value as it nears maturity.

Carrying Value

The net amount at which an asset is valued on the balance sheet, taking into account depreciation, amortization, and impairment costs.

Effective-Interest Method

A method of amortizing the discount or premium on bonds payable over the life of the bonds, providing a periodic interest expense that reflects a constant rate of interest.