Ahn Is Looking for a Job with a "Very Effective

question 122

Multiple Choice

Ahn is looking for a job with a "very effective" company. What should you tell him about assessing organizational effectiveness?

• A) Organizational effectiveness cannot be measured
• B) Look for satisfied customers
• C) There is no single approach
• D) Look for happy employees
• E) Bottom-line profits are all that count

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Definitions:

Break-even Point

The point at which total revenues equal total expenses, resulting in no profit or loss for the business.

Unit Variable Cost

The cost associated with producing one additional unit of a product, which typically includes materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Contribution Margin

The amount by which sales revenue exceeds variable costs of goods sold, indicating how much revenue contributes towards covering fixed costs and generating profit.