A Tale of Two Managers

question 77

Multiple Choice

A Tale of Two Managers
Renee and Frank are managers of two different departments at Pharma-cost.com, an on-line pharmacy targeted to the Generation X population. The company is facing increased government scrutiny, especially with uncertainties surrounding on-line drug distribution, on-line sales tax, consumer protection regulation, etc. While Renee believes in defending the status quo through lawsuits and lobbying, Frank says Pharma-cost.com should improve performance to avoid government intervention.
-Refer to A Tale of Two Managers. Renee would be classified as having a ____ position on management's political response continuum.

• A) reactive
• B) proactive
• C) wait and watch
• D) neutral
• E) anticipatory

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Definitions:

Activity Cost Pools

Aggregations of all costs associated with specific activities used in activity-based costing to allocate costs more accurately.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the activities they require, providing more accurate product costing.

Equipment Depreciation

The process of allocating the cost of physical assets used in a business over their useful life, recognizing the wear and tear over time.

Indirect Labor

Workers who provide support to the production process but are not directly involved in creating the product.