Controls that measure variables that influence future profitability are called Select one: a. output controls. b. activity controls. c. behavior controls. d. steering controls.

Q: xplain the impact of risk, uncertainty, and changing variables on cost-volume-profit analysis.

A: Cost-volume-profit analysis is one of the decision accounting analytical approaches that aid in…

Q: An ERM is: A. Economic capital B. Enterprise stress-testing C. An attempt to take risk into more…

A: Enterprise Risk Management(ERM) means the process used by the companies to manage risks to achieve…

Q: Define the term predictive value.

A: Predictive value refers to the fact that quality financial information can be used to base…

Q: A quantitative analysis enables a decision maker to put a “price” on the sum total of the…

A: Definition: Quantitative analysis: A quantitative analysis focuses on the factors in a decision…

Q: Discuss the role of profit plan in implementing strategy.

A: Strategy: It is a plan of action that is framed to achieve the organizational overall goals.

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: Explain the qualitative factors in decision making.

A: Qualitative factors are a result of definite actions that are complicated or impossible to…

Q: A financial manager must choose between four alternative Assets: A, B, C, and D. Each asset costs…

A: Under profit maximization model, the main objective of a entity is to earn maximum profit by…

Q: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: what is return. Define risk and explain how it is assessed

A: Definition

Q: Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment)…

A:

Q: Define and give examples of the following terms: cost center, revenue center, profit center, and…

A: Responsibility center: It refers to that unit of the organization for which a separate executive is…

Q: Examples of how cost–volume–profit analysis can be used for decision-making.

A: Solution:Cost volume profit analysis represents the impact of change in cost to operating profit. it…

Q: What does the intrinsic value formula look like? Please explain the components of the formula.

A: Intrinsic value or the real value is the calculated value or anticipated value of a company’s stock…

Q: Describe relationship between risk and profitability.

A: Risk and profitability have direct relation. Lower the risk, lower is the return and Higher the…

Q: What issues should managers consider when making capitalstructure decisions?

A: Introduction: Capital structure is nothing but the debt and securities that are included in the…

Q: Transfer prices should be judged by whether they promote: a. the balanced scorecard method. b.…

A: Transfer prices are the prices charged for goods and services exchanged between different units…

Q: Comment on the use of probability in investment decision process.

A: Use of probability is a very important tool when it comes to making decisions with regards to…

Q: Show and contrast how return on investment and residual income are used to evaluate the performance…

A: ROI  (return on investment =  ( Net Profit / Cost of the investment) X  100    Residual income =…

Q: Metrics that are early in the value chain are normally considered to be _____ indicators. a.value…

A: Value chain analysis is analyzing the chain of process which create value to the company

Q: Describe the process of the Net-Investment Test?

A: The Net-Investment test is done to figure out if an investment is a 'Pure investment' or a 'Mixed…

Q: Distinguish between a profit center and an investment center. Draw a diagram illustrating the…

A:

Q: Which of the following is not a measure that management can use in evaluating and controlling…

A: The investment centers are typically very large divisions of a company. Investment center managers…