The Method of Managerial Judgement in Determining the Cost Behavior

question 102

Multiple Choice

The method of managerial judgement in determining the cost behavior uses:

• A)a manager's experience and past observation of cost relationships to determine fixed and variable costs.
• B)a manager's skills in determining practical capacity.
• C)a manager's past observation to distinguish flexible resources and committed resources.
• D)a manager's ethical focus to determine step-variable costs and step-fixed costs.

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Definitions:

Person-Job Fit

The compatibility between a person's skills, experiences, and values and the requirements, dynamics, and culture of a job.

Organizational Identification

The extent to which employees associate themselves with their organization, adopting its values and goals as their own.

Person-Job Fit

The compatibility between an individual's skills, abilities, interests, and values with the requirements and characteristics of a job.

Knowledge, Skills

The theoretical or practical understanding of a subject (knowledge) and the ability to perform tasks effectively due to one's competence (skills).