Under which functional area standards related to capital expenditure are determined?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4 - Finance and Accounting.
Finance and Accounting are the functional area related to capital expenditure which are determined.
Standards used in Functional Areas to Gauge Performance
| Production | Marketing | Human Resource Management | Finance and Accounting |
| Quantity | Sales volume | Labour relations | Capital expenditure |
| Quality | Sales expense | Labour turnover | Inventory |
| Cost | Advertising expenditure | Labour absenteeism | Flow of capital |
| Individual job Performance | Individual Sales-person’s performance | Liquidity |