The Production Manager at ABC Inc

question 36

Multiple Choice

The production manager at ABC Inc.is responsible for formulating the budget for his department.He will be evaluated on his ability to control costs.After considerable thought, he arrives at his best estimate of costs, and then adds a further 10% to the projections.Chances are he has inflated the cost projections because

• A)that is the way it has always been done.
• B)conservative accounting practise requires that he not under report expenses.
• C)by overestimating expenses, it will make it easier for him to come in under budget and receive a favourable evaluation.
• D)none of the above.

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Definitions:

Specified Period

A set length of time identified for a particular purpose or activity.

SMART Goals

Specific, Measurable, Achievable, Relevant, and Time-bound objectives designed to guide goal setting effectively.

Time-based

Relating to, or determined by, the passage of time or a particular time interval.

Achievable

Something that can be accomplished or attained with effort, skill, or resources; realistic and attainable goals or objectives.