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David Is a Store Manager

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David is a store manager. He has nine employees working under him and they all know that he has a clear vision for the store and that he is going to work very hard to achieve his goals. Instead of just delegating the tasks, David leads his employees by example, always doing more than what is required. The employees follow David's lead because they see and are impressed by what he accomplishes on a daily basis. David is a____ leader.


Definitions:

Variable Production Costs

Costs that vary directly with the volume of production, including direct labor and materials.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific segment of the business, and would disappear if the segment did.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production.

Variable Costing

An accounting method that considers only variable production costs (costs that change with the level of output) in the calculation of product costs.

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