Jennifer Is the Manager of a Credit Card Processing Department

question 26

Multiple Choice

Jennifer is the manager of a credit card processing department. She has determined that each processor should be able to input information on 75 credit purchases per hour. She has established a range of plus or minus 5 purchases and an error rate of no more than 2 per hour. Jennifer is performing the management function of

• A) planning.
• B) directing.
• C) staffing.
• D) controlling.
• E) organizing.

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Definitions:

Financial Break-Even

The point at which total revenues and total expenses are equal, resulting in a net income of zero and indicating that a project or business is neither losing nor making money.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and loan payments.

Contribution Margin

The amount by which the sales revenue of a product exceeds its variable costs, indicating how much contributes to covering its fixed costs and generating profit.

Variable Cost

Costs that change in proportion to the good or service that a business produces, varying depending on production volumes.