As Change Agents, Managers Should Be Motivated to Initiate Change

question 89

Multiple Choice

As change agents, managers should be motivated to initiate change because they are committed to ________.

• A) improving their organization's performance
• B) managing and want to do the best they can for everyone
• C) promoting the welfare of their employees
• D) meeting the competition head-on in the market

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Definitions:

Variable Cost Method

A cost-plus method of pricing setting in which only the variable costs are included in the cost amount to which the markup is added.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.