The Types of Messages Sent in Downward Communication Might Include

question 51

Multiple Choice

The types of messages sent in downward communication might include

• A)an employee's idea for improving a business process.
• B)instructions about an employee's job.
• C)employee expression of grievances.
• D)a focus group's feedback to management.
• E)an update on the current status from a foreign branch.

Understand the concept of break-even analysis in business.

Calculate unit product cost using both absorption costing and variable costing methods.

Prepare income statements under both absorption costing and variable costing.

Reconcile variable costing and absorption costing net operating incomes.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by a company’s fixed versus variable costs.

Operating Cash Flows

The cash generated from the normal operations of a business, reflecting its ability to generate sufficient cash to maintain and develop its operations.

Units Sold

The total number of product units that have been sold during a specific time period.

Marginal Cost

The cost of producing one additional unit of a product or service.