Operational control systems can be distinguished from financial control systems:
A)In the time horizon: financial-control systems have a long-term perspective.
B)Because they focus on the control of basic business processes.
C)Because such systems rely on the use of flexible,not static,budgets.
D)Because they focus on explaining the total operating income variance for a period.
E)They do not include nonfinancial performance indicators.

Question

Quizplus · Accepted Answer

Operational control systems focus on the control of basic business processes, while financial control systems are concerned with managing financial resources and financial performance.

Answer: A 
 Financial control systems typically have a long-term perspective, focusing on the overall financial health of the organization and achieving long-term financial goals. Operational control systems, on the other hand, are more concerned with day-to-day operations and short-term performance.

Answer: C 
 Flexible budgets are a common feature of operational control systems, allowing managers to adjust spending and resources as needed to achieve desired outcomes. Financial control systems may use static budgets or other approaches to manage financial resources.

Answer: D 
 Financial control systems are more concerned with explaining overall financial performance, including total operating income variance. Operational control systems may track nonfinancial performance indicators as well as financial ones.

Answer: E 
 This statement is not accurate, as operational control systems may track both financial and nonfinancial performance indicators to assess overall organizational performance.

Operational Control Systems Can Be Distinguished from Financial Control Systems