A Company Is Trying to Decide Whether to Keep or Drop

question 52

Multiple Choice

A company is trying to decide whether to keep or drop the organic foods department in its grocery store.If organic foods are dropped, the manager will be laid off.What is the manager's salary in relation to the decision to keep or drop the department?

• A)An opportunity cost and therefore relevant
• B)Avoidable and therefore incremental
• C)Sunk and therefore not relevant
• D)The same for all alternatives and therefore not relevant

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Definitions:

Human Relations Techniques

Approaches and methods used to improve interpersonal relationships, worker satisfaction, and productivity in the workplace.

Human Relations Movement

An approach to management and organizational behavior emphasizing the importance of social relations and employee well-being.

Unionization

The process of organizing the employees of a company into a labor union to seek collective bargaining rights and protect their interests.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as effectively as possible.