How Might an Effective Manager Choose the Best Plan of Action

question 92

Multiple Choice

How might an effective manager choose the best plan of action when making a decision?

• A) making a self-generated list of pros and cons and choosing based on the list
• B) using the results of a survey that was sent to key customers who will be affected
• C) sending a feedback form to customers after the plan has been executed
• D) creating only one plan with no alternatives so it has to work
• E) reviewing what other managers have done in the same situation and doing the same

---

Definitions:

Contribution Format

A financial reporting format that highlights the contribution margin, used primarily in internal decision-making processes.

Income Statement

A financial report detailing a firm's income and expenditures within a certain timeframe, resulting in the total earnings or deficit experienced during that interval.

Net Operating Income

The income generated from normal business operations after deducting operating expenses but before interest and taxes.

Contribution Format

A type of income statement that separates variable costs from fixed costs to show the contribution margin.