Which of the following is the control equation?
A) Need for Action = Desired Performance - Actual Performance
B) Breakeven Point = Fixed Costs - (Price - Variable Costs)
C) Acid Test = Current Assets - Inventories/Current Liabilities
D) Debt Ratio = Total Debts/Total Assets
E) Net Income = Sales - Expenses

Question

Quizplus · Accepted Answer

The control equation is a formula used in management and operations to identify the need for corrective actions in a process or system. It is represented by the equation "Need for Action = Desired Performance - Actual Performance." This equation helps in determining the gap between the current performance and the desired performance, indicating the extent of action required to meet objectives.

Which of the Following Is the Control Equation