Before a Supervisor Can Make Decisions About How to Trim

question 50

Multiple Choice

Before a supervisor can make decisions about how to trim costs, he or she has to know where the money is going. The most important source of such information is the

• A) employee handbook.
• B) code of ethics.
• C) budget report.
• D) vision statement.

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Definitions:

Graph

A diagram representing data visually, using lines, bars, or other symbols.

Implicit Cost

Refers to the opportunity costs that are not directly paid for in money but represent the loss of value from using resources for a particular venture instead of their best alternative use.

Explicit Cost

Direct, out-of-pocket payments for goods or services used in the production of a product or offering of a service.

Sole Proprietor

An individual who owns and operates a business alone, bearing all the responsibilities and benefits of the business.