When Clair Is Not Too Busy,she Walks Around the Department

question 31

Multiple Choice

When Clair is not too busy,she walks around the department to see how things are going and she talks with and encourages her workers.Which of the following primary methods of control is being used in this situation?

• A) regular meetings and reports
• B) audits
• C) observation
• D) the exception principle

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Definitions:

Total Contribution Margin

The amount left over from sales revenue after variable expenses have been deducted; it contributes to covering fixed costs and generating profit.

Fixed Costs

Charges that stay the same no matter the scale of production or sales, like rent, salaries, and insurance.

Variable Costs

Expenses that vary depending on the amount of products or services a company generates.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in activity level but not in the same proportion.