Which of the Following Is NOT a Benefit of Prescribing

question 59

Multiple Choice

Which of the following is NOT a benefit of prescribing policies and operating procedures to aid management's task of implementing strategy?

• A) placing limits on independent action and helping overcome resistance to change
• B) providing top-down guidance to operating managers, supervisory personnel, and employees regarding how things need to be done and what behavior is expected
• C) promoting the creation of a work climate that facilitates good strategy execution
• D) helping build employee commitment to adopting best practices and using the tools of TQM and Six Sigma
• E) helping enforce consistency of effort in how particular activities are performed in geographically scattered organization units ered operating units.

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Definitions:

Break-even Sales

The amount of revenue required to cover a company's total fixed and variable costs.

Common Fixed Expenses

Expenses that do not vary with production or sales levels, shared across multiple products, departments, or segments of a business.

Operating Period

The amount of time a business or a part of it operates within a specific timeframe, typically a fiscal year or quarter.

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.