Salespeople at Widget Ltd

question 142

Multiple Choice

Salespeople at Widget Ltd.complain that they lose sales bonuses when the production department is out of stock of a particular item.This sometimes causes customers to buy elsewhere rather than wait for the next production run.Meanwhile,production employees complain that salespeople don't appreciate the need to minimize inventory costs,for which production staffs are rewarded.This is mainly an example of conflict due to:

• A)ambiguity.
• B)communication problems.
• C)pooled task interdependence.
• D)differentiation.
• E)goal incompatibility.

---

Definitions:

Variable Costs

Financial outlays that adjust based on the volume of production or sales, for instance, materials and workforce expenses.

Fixed Costs

Costs that do not change with the level of output or production volume, such as rent, salaries, and insurance premiums.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can drop before the company incurs a loss.

Break-Even Point

The level of sales at which total revenues equal total costs, and the business makes no profit but also no loss.