Through _____ Control, Managers Can Manage in Ways That Allow

question 8

Multiple Choice

Through _____ control, managers can manage in ways that allow and expect people to control their own behavior.

• A) normative
• B) internal
• C) regulatory
• D) clan
• E) bureaucratic

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.

Absorption Costing

A method of cost accounting that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Cost Behavior

The way in which a cost reacts or changes when there is a change in the level of business activity.

Variable Costing Format

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.