When an Organization Is Using Concentration Strategy,it Will

question 81

Multiple Choice

When an organization is using concentration strategy,it will

• A)have short-run pay levels below the market.
• B)have a long-term orientation.
• C)make centralized pay decisions.
• D)maintain high variable pay levels.
• E)have benefit levels below the market.

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Definitions:

Variable Costing

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

Unit Product Cost

The total cost attributed to producing one unit of product, including direct materials, direct labor, and allocated manufacturing overhead.

Net Operating Income

A company's income after operating expenses have been deducted, but before deducting interest and taxes.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead expenses charged against income in the period they are incurred.