You Have Just Been Hired by Computers- R- Us to Institute

question 120

Multiple Choice

You have just been hired by Computers- R- Us to institute a management by objectives program.The sales people have asked you to explain the program to them and to help them understand how it will affect them. You want to make sure that they understand the ingredients common to MBO programs.Which of the following is not one of those ingredients?

• A)Feedback will be given on each employee's performance.
• B)Goals will be general enough to allow creativity.
• C)Decision making will be participative.
• D)Time periods will be explicit.

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Definitions:

Cost Behavior

The way in which a cost changes in relation to changes in activity levels, categorized into fixed, variable, and mixed costs.

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.