When a Manager Says to a Researcher, "Here Is What

question 25

Multiple Choice

When a manager says to a researcher, "Here is what I want to know..." the researcher should ask:

• A) What decision are you trying to make?
• B) When do you want to know it?
• C) In which format should we give you the answer?
• D) How long have you known this is what you need?
• E) What are you willing to pay for that information?

---

Definitions:

Fixed Budget

A budget that remains constant regardless of changes in the level of activity or volume, typically used for planning purposes.

Variable Costs

Outlays that fluctuate according to the amount of production or volume of sales.

Flexible Budget Performance Report

A report comparing actual operating results to a budget that adjusts with changes in the volume of activity.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profit.