When Generating Solutions, It Is Important To

question 28

Multiple Choice

When generating solutions, it is important to:

• A) evaluate each solution immediately, and as part of the same step.
• B) discount seemingly crazy or wild suggestions, since this will make the process more efficient.
• C) evaluate suggestions as a separate step only once all possible solutions have been generated.
• D) place greater emphasis on the first suggestions, since these are usually the best options.
• E) place greater emphasis on the last suggestions, since these are usually the best options.

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Definitions:

Contribution Margin

Contribution Margin is the selling price per unit minus the variable cost per unit, indicating how much of a product's sales contribute towards fixed expenses and profit.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs.

Indirect Expenses

Costs that are not directly tied to a specific product, service, or department and need to be allocated, such as utilities or rent.