The Most Potentially Threatening Force That Managers Must Deal with in the Task

question 66

Multiple Choice

The most potentially threatening force that managers must deal with in the task environment is

• A)rivalry between competitors.
• B)managing the global supply chain.
• C)negotiating and administering agreements with unions and their representatives.
• D)a reliable supply of input resources.
• E)a distributor demands that the company reduces the prices of its goods and services.

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Definitions:

Estimated Line of Cost Behavior

A projection or estimation of how costs change in relation to changes in an organization’s level of activity.

High-Low Method

An accounting technique used to estimate variable and fixed costs associated with a business activity by analyzing the highest and lowest levels of activity.

Scatter Diagram

A graphical representation used to show the relationship between two variables, often used in statistics and quality control to identify potential correlations.

Degree of Operating Leverage (DOL)

A measure of how much a company's operating income will change in response to a change in sales, indicating the company's sensitivity to changes in business volume.