A comprehensive management accounting and control system regarding manufacturing overhead costs:
A) Includes nonfinancial but not financial performance indicators.
B) Relies on direct managerial observation rather than a formal system for cost-control purposes.
C) Provides information for strategic but not operational control.
D) Provides financial-control information to operating personnel, while both financial and nonfinancial performance indicators to managers.
E) Includes both financial performance indicators as well as nonfinancial performance indicators.

Question

Quizplus · Accepted Answer

A comprehensive management accounting and control system regarding manufacturing overhead costs includes both financial performance indicators and nonfinancial performance indicators. It provides financial-control information to operating personnel while both financial and nonfinancial performance indicators to managers. This system provides a complete picture of the manufacturing overhead costs, including both quantitative and qualitative aspects of performance, facilitating effective decision-making. Hence, option E is the correct choice.

A Comprehensive Management Accounting and Control System Regarding Manufacturing Overhead