Why Is the Feedback Loop Important

question 27

Multiple Choice

Why is the feedback loop important?

• A) It translates lower-level plans.
• B) It determines the organization's long-term goals for the next one to five years.
• C) It looks at what is working and what could be different to maximize efficiency.
• D) It monitors progress so that corrective action can take place.
• E) It describe how the company contributes to the world.

---

Definitions:

Markup Percentage

The percentage added to the cost of goods to cover overhead and profit, representing the difference between the cost of the product and its selling price.

Product Cost

The total of costs directly attributed to the production of a product, including materials, labor, and manufacturing overhead.

Contribution Margin

A metric that represents the amount of revenue from sales that exceeds the total variable costs associated with producing those sales.

Machine Hours

A measure of the amount of time a machine is operated during a given period, used for allocating manufacturing costs to products or activities.