When Formal Planning Fails to Lead to Higher Performance,which of the Following

question 36

Multiple Choice

When formal planning fails to lead to higher performance,which of the following is most likely to be the reason for the failure?

• A)the company emphasized the control function over other functions.
• B)a participative style of planning was used.
• C)managers were allowed too much autonomy.
• D)constraints of the external environment

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Definitions:

Unit Variable Costs

The costs that vary directly with the level of production or sales volume, such as materials and labor, calculated on a per-unit basis.

Break-even Sales

The amount of revenue from sales needed to cover all of a company’s operating expenses, resulting in neither profit nor loss.

Unit Variable Costs

The costs that vary directly with the production volume, including materials and labor, on a per unit basis.

Break-even Point

The point at which total revenues equal total costs, resulting in no profit or loss.