If an Empowered Employee Makes a Wrong Decision, a Manager

question 24

Multiple Choice

If an empowered employee makes a wrong decision, a manager should:

• A) train the employee
• B) place the employee on a lower input level
• C) ignore the problem
• D) keep track of any future problems

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Definitions:

High-low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Net Operating Income

The net profit of a business is calculated by deducting operating expenses from the gross profit and before accounting for interest and taxes.

Sales Volume

The number of units sold within a reporting period, used as a measure of business activity.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can drop before a company incurs a loss.