Many Organizations Use Suggestion Boxes, Open Door Policies, and Surveys

question 26

Multiple Choice

Many organizations use suggestion boxes, open door policies, and surveys to facilitate:

• A) upward communication.
• B) downward communication.
• C) formal communication.
• D) informal communication.
• E) diagonal communication.

Calculate profit margin and understand its relevance in assessing divisional performance.

Understand the impact of negotiated transfer prices on operating income of divisions and the company as a whole.

Allocate support department expenses using appropriate cost drivers.

Recognize the range of acceptable transfer prices and their implications.

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Definitions:

Self-monitoring

The act of observing and regulating one’s own behavior in social situations to fit into the surrounding environment or achieve a personal goal.

Need for Closure

The desire to find an answer or to come to a decision quickly in order to alleviate uncertainty and ambiguity.

Ambiguity

The presence of uncertainty or vagueness in meaning in expressions or situations.

Need for Cognition

A psychological tendency to engage in and enjoy effortful cognitive activities.