In Dealing with a Negative Situation, If Company Leaders Provide

question 110

True/False

In dealing with a negative situation, if company leaders provide information designed to convince others that the company was not responsible for the negative situation, the company is using excuses as a form of impression management.

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Definitions:

Average Variable Cost (AVC)

The variable cost of production divided by the number of units produced, reflecting the cost per unit excluding fixed costs.

Average Fixed Cost (AFC)

A firm’s total fixed cost divided by output (the quantity of product produced).

Marginal Cost (MC)

The extra (additional) cost of producing 1 more unit of output; equal to the change in total cost divided by the change in output (and, in the short run, to the change in total variable cost divided by the change in output).

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.