In Management by Objectives (MBO), the Supervisor and Subordinate Formally

question 34

Multiple Choice

In management by objectives (MBO) , the supervisor and subordinate formally agree on all of the following except:

• A) procedures for distributing rewards based on performance results.
• B) the plans for accomplishing the subordinate's performance objectives.
• C) standards for measuring the accomplishment of objectives.
• D) the subordinate's performance objectives for a specific time period.
• E) procedures for reviewing performance results.

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary directly with the level of production output or sales volume, such as raw materials and direct labor costs.

Sales Revenue

Income earned from the sale of goods or services, representing the primary source of income for businesses involved in retail or wholesale trade.

Safety Margin

The difference between the actual performance of an entity and its break-even point.