Since Most Well-Run Firms Utilize a Hierarchy of Goals to Guide

question 84

Multiple Choice

Since most well-run firms utilize a hierarchy of goals to guide major decisions,________ is especially important to managers at every level to prevent departments from working at cross-purposes.

• A)strategic planning
• B)financial auditing
• C)employee testing
• D)employee benchmarking

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Variable Cost

Costs that vary in direct proportion to changes in levels of production or business activity, such as materials and labor.

Fixed Cost

A cost that does not change with the volume of sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.