__________ Theories Indicate How Organizations Should Operate

question 79

Multiple Choice

__________ theories indicate how organizations should operate.

• A)Descriptive
• B)Prescriptive
• C)Operational
• D)Prophetic

---

Definitions:

Fixed Costs

Expenses that do not change in relation to production volume or business activity level, such as rent or salaries.

Break-Even Point

The financial level at which total revenues equal total expenses, resulting in no net profit or loss.

High-Low Method

A technique used in accounting and finance to estimate fixed and variable costs based on the highest and lowest levels of activity.

Factory Machine Hours

A measure of production time, indicating the total hours that machinery is operated in the manufacturing process.