Which of the Following Statements Is NOT True

question 61

Multiple Choice

Which of the following statements is NOT true?

• A) Open-mindedness is an important guideline for effective strategic management.
• B) Strategic management must become a self-perpetuating bureaucratic mechanism.
• C) No organization has unlimited resources.
• D) Strategic decisions require trade-offs.
• E) Strategic management must be a self-reflective learning process.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is available to cover fixed costs and generate profit.

Variable Cost

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

Cost of Goods Sold

The total cost directly associated with producing the goods sold by a business during a specific period, including labor, materials, and manufacturing overhead.

Product Costs

The costs directly associated with producing goods, including direct materials, direct labor, and manufacturing overhead.