From the Manager's Perspective

question 32

Multiple Choice

From the manager's perspective:

• A)it is important to treat implicit costs as explicit in order to make sound strategic decisions.
• B)implicit costs are simply a theoretical construct and should be ignored in the decision-making process.
• C)only explicit costs matter because accounting profit is based on explicit costs.
• D)there is no difference between implicit and explicit costs. As such, treating implicit costs as explicit would result in double counting and an overstatement of total costs.

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Definitions:

Public Relations Exercise

Activities designed to manage and improve the public image and relationships of an organization with its stakeholders.

Transactional Marketing

A business strategy focusing on single, "point of sale" transactions, emphasizing maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing a balance between economic growth, environmental protection, and social equity.

Multinational Companies

Enterprises operating in several countries but managed from one (home) country, typically with a centralized global management structure.