How Might an Emphasis on Variances as Performance Measures Lead

question 116

Multiple Choice

How might an emphasis on variances as performance measures lead to overproduction?

• A) Managers may produce more units than a bottleneck can handle.
• B) Managers may fully utilize the existing labor force.
• C) Managers may produce fewer units than needed.
• D) Managers may buy more raw materials than needed for production.

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Definitions:

Repeated Statements

The act of saying or presenting the same information multiple times to reinforce a message or ensure understanding.

Altruism

The belief in or practice of disinterested and selfless concern for the well-being of others.

Selfless Action

An act performed with no expectation of reward or recognition, often motivated by a desire to help or benefit others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.