A Severe Cyclone Causes Substantial Damage to a Brick Manufacturing

question 138

Multiple Choice

A severe cyclone causes substantial damage to a brick manufacturing company's production equipment. As a result, the company spends a sum of $25,000 to repair the equipment. Given this information, the sum of $25,000 that the company spends is its _____.

• A) explicit cost
• B) implicit cost
• C) indirect cost
• D) direct cost

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Definitions:

Foundation

The underlying basis or principle for something, providing support or the starting point from which something develops.

Positive Organizational Behavior

A study within organizational psychology focusing on the application of positively oriented human strengths and psychological capacities to improve workplace performance.

High-Involvement Management

The way managers empower employees to make decisions, provide them with extensive training and the opportunities to increase their knowledge base, share important information, and provide incentive compensation.

Competitive Advantage

This is the attribute that allows an organization to outperform its rivals, achieved through offering greater value to consumers or operating more efficiently.