The Short-Term Orientation Embraced by Most Business Executives Stems from ________

question 84

Multiple Choice

The short-term orientation embraced by most business executives stems from ________.

• A) short consumer memory of good corporate behavior
• B) the short-term orientation of the consumers they target
• C) the fact that managerial performance is usually evaluated on the basis of short-term results
• D) the fast-paced nature of media flows in today's hyper-stimulated environment
• E) the increasing importance of public relations as a vehicle for communicating with consumers

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Definitions:

Variable Distribution Costs

Expenses that change in proportion to how a product is stored, handled, and delivered.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much of the revenue actually contributes to covering fixed costs.

Avoidable Fixed Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service that is not contributing to profits.

Unavoidable Allocated Fixed Corporate Costs

Fixed expenses that are distributed across different departments or products within a company, and cannot be avoided or eliminated.