The Value to Managers of Understanding Key Success Factors Is

question 5

Multiple Choice

The value to managers of understanding key success factors is

• A)self-evident.
• B)legitimate because it is accepted by the academic world.
• C)that it generates "generic strategies" which guarantee success.
• D)to help maintain a strategic perspective of what needs to be done to survive, and help them avoid degenerating into a fire fighting approach.

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Definitions:

Variable Expenses

Expenses that vary directly with changes in business activity level, such as sales volume or production quantity.

Fixed Expenses

Expenses that remain constant regardless of any variations in the volume of production or sales.

Break-Even Point

The level of sales at which profit is zero.

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs and contributes to covering fixed expenses and generating profit.