Two Managers Have Conflicting Views of How to Best Handle

question 18

Multiple Choice

Two managers have conflicting views of how to best handle a recent increase in funds. They have many meetings and each manager must argue his position. After several weeks, a decision is made that results in an efficient and effective use of the new resources. This example BEST shows that ________.

• A) only top management partake in political decision making
• B) it harms other individuals when managers go after their goals
• C) formal power is not necessary to engage in political decision making
• D) political decision making can lead to improved performance

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Definitions:

Reversal

The process of undoing or nullifying a previous accounting entry or transaction.

Impairment Loss

The difference when the recorded value of an asset or a cash-producing entity surpasses the amount it can be recovered for.

Depreciable Asset

An asset that loses value over time due to wear and tear, obsolescence, or age, and for which depreciation can be applied.

Recoverable Amount

The higher of an asset’s fair value less costs of disposal and its value in use.