Which of the Following Statements About Contingency Plans Is Not

question 68

Multiple Choice

Which of the following statements about contingency plans is not true?

• A) Contingency plans should be as simple as possible.
• B) Only high-priority areas require the insurance of contingency plans.
• C) Contingency plans should be developed for favorable and unfavorable events.
• D) Strategists should plan for all possible contingencies.
• E) Contingency plans minimize the impact of potential threats.

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Definitions:

Inventoriable Costs

Synonym for product costs.

Manufacturing Overhead

Refers to all the indirect costs associated with manufacturing a product, excluding direct materials and direct labor.

Production Supervisors

Managers responsible for overseeing the production process, ensuring efficiency, and meeting production targets.

Selling Costs

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.