Which of the following allows employees to see for themselves the financial condition of the company?
A) Open-book management
B) An economic value-added system
C) Activity-based costing
D) An inappropriate control system
E) Market value-added system

Question

Quizplus · Accepted Answer

Open-book management is a management philosophy that allows employees to access financial information about the company. This transparency enables them to see for themselves the financial condition of the company, which helps them to understand how their performance affects the bottom line. Economic value-added system and market value-added system are financial performance metrics that measure the value a company creates for shareholders. Activity-based costing is an accounting method that identifies and assigns costs to different activities, which helps to determine the costs associated with different products, services, or activities. An inappropriate control system is not a valid answer since it does not provide employees with information about the financial condition of the company.

Which of the Following Allows Employees to See for Themselves