Which of the Following Steps in a Simplified Feedback Control

question 18

Multiple Choice

Which of the following steps in a simplified feedback control model refers to setting targets?

• A) take corrective action as needed
• B) establish standards of performance
• C) measure actual performance and compare to standards
• D) set organizational mission and vision

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Definitions:

Economic Profits

The financial gains that are realized when total revenues exceed total costs, including both explicit and implicit costs.

Accounting Profits

The net earnings of a company as calculated by subtracting all explicit costs from total revenues, according to standard accounting practices.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent or salaries.

ATC

Average total cost is found by dividing the overall production cost by the number of units produced.