The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called ____________?
Correct answer: C. diagnostic control systems
- A. interactive control systems
- B. belief systems
- C. diagnostic control systems
- D. boundary systems
Explanation
Diagnostic control systems use performance measures to compare actual results with targets and identify corrective action. Residual income, EVA and customer satisfaction are examples of such performance indicators.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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