Controls That Focus on Desired Targets and Allow Managers to Use

question 75

Multiple Choice

Controls that focus on desired targets and allow managers to use their own methods for reaching defined targets are called __________ controls.

• A) process
• B) output
• C) turnout
• D) production
• E) methods

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Definitions:

Renovation Expense

Costs incurred in updating or restoring the physical condition of a business asset to increase its value or extend its life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Operating Expenses

are the costs involved in running a business that are not directly tied to the creation of a product or service, such as rent, utilities, and administrative salaries.

Cash Sales

Transactions where payment for goods or services is made at the time of sale in cash or its equivalent.