Performance Reports Help Managers

question 12

Multiple Choice

Performance reports help managers:

• A) use management by exception and effectively control operations.
• B) decide whether a cost, profit, or investment center framework is appropriate.
• C) design their organizational hierarchy.
• D) pinpoint trouble spots.
• E) use management by exception and effectively control operations and pinpoint trouble spots.

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Definitions:

Output

The quantity of goods or services produced by a business, individual, machine, or industry over a specified period.

Marginal Costs

Marginal costs refer to the increase or decrease in the total cost of producing one more unit of a good or service.

Marginal Productivity

The additional output that results from employing one more unit of input, such as labor or capital, while keeping other inputs constant.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like wages or lease payments.