On the Managerial Grid, a Leader Who Is Low in Both

question 44

Multiple Choice

On the managerial grid, a leader who is low in both concern for people and concern for production would rate _________.

• A)(1, 1)
• B)(9, 1)
• C)(5, 5)
• D)(9, 9)

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Definitions:

Profit Margin

A financial metric expressing the percentage of revenue that remains as profit after all expenses are deducted from gross sales.

Target Cost

The desired cost of producing a product, determined by subtracting a desired profit margin from a competitive market price, aimed at ensuring market competitiveness.

Traditional Costing Systems

Costing methods that assign manufacturing overhead to products based on a predetermined overhead rate, often using direct labor hours as the allocation base.

Design Costs

Expenses associated with the process of creating and developing a plan or specification for the production of objects or systems.