The Managers of Constantine Company Receive Performance Bonuses Based on the Net

question 128

Multiple Choice

The managers of Constantine Company receive performance bonuses based on the net income of the firm.Which inventory costing method are they likely to favor in periods of declining prices?

• A)LIFO
• B)Average Cost
• C)FIFO
• D)Physical inventory method

Distinguish between workforce reduction, work redesign, and systemic change as strategies of downsizing.

Identify the impact of downsizing on organizational culture and employee morale.

Differentiate between outsourcing, offshoring, and outplacement within the context of organizational restructuring.

Recognize the importance of ethical considerations and justice (interactional, procedural, distributive) in the downsizing process.

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Definitions:

Average Variable Costs

The total variable costs of production divided by the number of units produced, highlighting how variable costs change with output levels.

Average Total Costs

The total cost of production divided by the total quantity produced, representing the average cost per unit.

Total Fixed Costs

The sum of all costs associated with the production of goods or services that do not change with the level of output, such as rent, salaries, and equipment maintenance.