What Force Does Manne Indicate Constrains the Actions of Managers

question 9

Multiple Choice

What force does Manne indicate constrains the actions of managers so that they stay focused on the goals of owners?

• A)Market for corporate control
• B)SEC
• C)Corporate board
• D)Corporate governance
• E)CEO

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Definitions:

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remain constant regardless of the level of production, such as depreciation on factory equipment or salaries of factory supervisors.

Unit Product Cost

represents the total cost to produce one unit of product, including direct materials, direct labor, and overhead.

Fixed Manufacturing Overhead

encompasses the consistent, non-varying costs of producing goods, such as factory lease or salary of supervisors, linked but differently phrased to fixed manufacturing expenses.

Outside Supplier

An external entity that provides goods or services to a company, which are not produced in-house.