Frederick W

question 15

Multiple Choice

Frederick W. Taylor used the phrase "systematic soldiering" to describe:

• A) Industrial sabotage
• B) The adoption of production methods that greatly improved productivity
• C) The use of organizational techniques based on military models
• D) The tendency of workers to do as little as possible while on the job

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Definitions:

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from gross revenue, according to accepted accounting principles.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the financial gain exceeding the opportunity cost of resources used.