Management by Objectives (MBO)is a Management System in Which Specific

question 139

Multiple Choice

Management by objectives (MBO) is a management system in which specific performance goals are ________.

• A)jointly determined by employees and their managers
• B)delegated by top managers to lower level managers
• C)developed in such a manner that the employees are self-directed and do not need supervision
• D)delegated by supervisors to employees

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Definitions:

Residual Value

Residual value is the estimated value of an asset at the end of its useful life, reflecting what it could be sold for or its scrap value.

Double-Declining Balance

An accelerated method of depreciation that doubles the regular depreciation approach, resulting in larger depreciation expenses in the initial years of an asset's life.

Units-Of-Output

A method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces.

Straight-Line

A technique for computing an asset's depreciation by distributing its cost evenly across each year of its expected useful life.