The Primary Benefit of Using the Indirect Strategy to Communicate

question 16

Multiple Choice

The primary benefit of using the indirect strategy to communicate bad news is that it

• A)demonstrates your writing abilities.
• B)ensures that your reasoning will be read while the receiver is still receptive.
• C)disguises the bad news.
• D)places the bad news before the explanation.

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Definitions:

Standard Cost System

A cost accounting system that uses standard costs for inventory valuation and as a tool for cost control.

Budgeted Activity

Planned or expected levels of operational activity, which may include sales volume, production quantities, or labor hours, for budgeting purposes.

Fixed Overhead

Costs that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Budget Variance

The difference between what was budgeted or planned in terms of financial performance or cost, and what was actually achieved.