Informal Efforts,as Opposed to Official Job Assignments,in Which Employees Work

question 77

Multiple Choice

Informal efforts,as opposed to official job assignments,in which employees work to create new products and processes of their own choosing and initiative are known as

• A)spin-offs.
• B)skunkworks.
• C)bootlegging.
• D)horse trading.
• E)sponsorship.

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Definitions:

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product cost calculations, excluding fixed costs.

Operating Income

Profit generated from a company's regular business operations, excluding expenses like taxes and interest.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.