Which of the following statements concerning Cost Management Systems (CMS) is False?
a. Performance rewards for top management consists of both long and short term incentives.
b. A CMS is composed of three primary elements: motivational, informational and reporting.
c. A CMS is not designed to cut costs but rather to get the maximum return from costs that are incurred.
d. One of the goals of the informational elements is the preparation of financial statements.
d
You might also like to view...
A sales forecast is an example of an organizational control from the _____ area.
A. informational B. physical C. human resources D. financial E. capital
Advocacy groups such as Consumers International and the Better Business Bureau can act on behalf of consumers and promote consumers' rights through ________ but not through ________
A) enforcing regulations; influencing the media B) influencing the media; political lobbying C) organizing boycotts; influencing the media D) political lobbying; enforcing regulations E) political lobbying; organizing boycotts
Sensitivity analysis is
a. an appropriate response to uncertainty in cash flow projections. b. useful in measuring the variance of the Fisher rate. c. typically conducted in the post investment audit. d. useful to compare projects requiring vastly different levels of initial investment.
The top-down perspective of empowerment
A. delegates responsibility. B. encourages cooperative behaviour. C. trusts people to perform. D. encourages intelligent risk-taking.