Behavior Substitution Occurs When

question 3

Multiple Choice

Behavior substitution occurs when

• A)a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units in order to keep its performance measures at a high level.
• B)there is a failure to produce at or near full capacity.
• C)individuals are placed into positions not suited to their abilities.
• D)managers tend to focus more of their attention on those aspects which are measurable than on those which are not.
• E)managers concentrate too much on short-term performance objectives.

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Definitions:

Work in Process Inventory

Inventory that includes all partially completed goods and materials that are in the process of being manufactured.

Manufacturing Costs

Expenses directly related to the creation of goods, including raw materials, labor, and overhead costs involved in production.

Cost of Goods Manufactured

The total production cost of the goods that were completed during a specific accounting period, including labor, materials, and overhead.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or significant improvements at once.