In an Ever-Changing World, the Challenge for Organizations Is Not

question 36

Multiple Choice

In an ever-changing world, the challenge for organizations is not just to produce innovative new products but also to balance a culture that is innovative and that

• A)eliminates its competitors.
• B)avoids too much adjustment.
• C)is traditional as well as visionary.
• D)builds a sustainable business.
• E)reverses contemporary trends.

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Definitions:

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for the direct costs and traceable fixed costs associated with that segment.

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold, treating fixed manufacturing overhead as an expense of the period in which it is incurred.

LIFO Inventory

A method of inventory valuation that assumes the last items placed in inventory are the first sold (Last In, First Out).