All of the Following Are Key Steps of Setting Up

question 48

Multiple Choice

All of the following are key steps of setting up feedback control systems, EXCEPT ______.

• A)comparing performance to standards
• B)establishing standards of performance
• C)getting employee opinions
• D)measuring actual performance
• E)taking corrective action

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Definitions:

Contribution Margin

Contribution margin represents the difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, showing how much each unit contributes to covering fixed costs and earning profit.