Which of the Following Is Not an Assumption of the Administrative

question 100

Multiple Choice

Which of the following is not an assumption of the administrative decision making model?

• A) Decisions goals often are vague, conflicting, and lack consensus among managers.
• B) Information is ambiguous and complete.
• C) When rational procedures are used, they are confined to a simplistic view of the problem that does not capture the complexity of real organizational events.
• D) Managers often are unaware of problems or opportunities that exist in the organization.
• E) Managers' searches for alternatives are limited because of human, information, and resource constraints.

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Definitions:

Selling Expenses

Costs incurred directly in the selling of goods or services, including advertising, sales commissions, and promotional materials.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.

Cost-Plus Approach

A pricing strategy where a fixed percentage is added to the production cost to determine the sale price of a product.

Bottleneck

A stage in a process that reduces the overall capacity because it runs at the slowest speed.