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:

Pituitary

A small, pea-sized gland located at the base of the brain, critical for regulating vital bodily functions and hormone secretion.

Superior Surface

The uppermost or above-mentioned part or face of an object or anatomical structure.

Kidney

A bean-shaped organ that excretes urine and is located retroperitoneally, high in the back of the abdominal cavity.

Adrenal

Relating to the adrenal glands, which are small glands located above the kidneys responsible for producing hormones that regulate metabolism, immune system, blood pressure, and stress responses.