Which of the Following Activities Is Part of the Planning

question 29

Multiple Choice

Which of the following activities is part of the planning function of management?

• A) Assigning a particular worker to do a specific task
• B) Looking at market forecasts to identify future business opportunities and challenges
• C) Praising a sales representative who has far exceeded her monthly sales objectives
• D) Conducting a job interview with a potential new employee

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Definitions:

Manufacturing Margin

The difference between the cost of production and the selling price of manufactured goods.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Absorption Costing

An approach to pricing that incorporates all production-related costs such as direct materials, direct labor, along with variable and fixed overhead expenses, into the product’s cost.