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Application of Cognitive Dissonance

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Application of Cognitive Dissonance
Marjorie has always believed that the most effective way to manage people is to be caring and compassionate. She felt the workplace should be a pleasant environment where people could enjoy coming to work. That worked fine for 15 years until the recent hiring of a new vice- president. Not only does he want the work environment changed so that "people spend more time working and less time on social issues," but he has informed Marjorie she must lay off 10 employees in her department in order to cut costs.
-Marjorie is probably suffering __________due to the directives issued by the vice- president.


Definitions:

Absorption Costing

A technique in accounting that ensures all expenses related to production, including direct materials, direct labor, as well as variable and fixed overhead costs, are factored into the product’s cost.

Fixed Costs

Fixed expenses that are unaffected by changes in production or sales volume, encompassing rent, salaries, and insurance.

Absorption Costing

A method of accounting for all the costs associated with manufacturing a product, including all direct costs and fixed and variable overhead expenses.

Variable Costing

An accounting approach where only variable manufacturing costs are included in product costs, excluding fixed manufacturing overhead.

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