The Buckingham Insurance Company Is Having a Hard Time Making

question 60

Multiple Choice

The Buckingham Insurance Company is having a hard time making a big change in the organization process. To help implement the change, the president of the company gets a key member of an outside organization to join the company's board of directors so that he will influence the change. Which of the following methods of managing resistance to change is used by the company?

• A)Education and communication
• B)Facilitation and support
• C)Negotiation and rewards
• D)Manipulation and cooptation
• E)Explicit and implicit coercion

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Definitions:

Fixed Budget

A budget that is established at the beginning of a period and does not change, regardless of actual performance or outcomes.

Direct Labor Rate

The cost per hour for direct labor, which includes wages of workers who are directly involved in the production of goods.

Efficiency Variances

Represents the difference between the actual input costs and the standard input costs anticipated for the production achieved.

Sales Price Variances

The difference between the actual price at which goods or services are sold and the expected (standard) sale price.