In a Study of CIOs from Around the World,McKinsey

question 19

Multiple Choice

In a study of CIOs from around the world,McKinsey & Company found that most CIOs reported to their:

• A) Chief executive officer.
• B) Chief financial officer.
• C) Chief operating officer.
• D) Managing supervisor.

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Definitions:

Net Operating Income

The profit a company makes from its operations, excluding non-operational revenues and expenses like interest and taxes.

Variable Costing

An accounting method that only includes variable production costs—material, labor, and overhead—in product cost calculations, excluding fixed costs.

Fixed Manufacturing Overhead

The sum of all production costs that do not change with the level of output, including salaries, rent, and utility expenses of a manufacturing facility.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing overhead costs in the cost of producing goods.