Which One of the Following Is Not a Benefit of Prescribing

question 75

Multiple Choice

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

• A) helping enforce consistency in how particular activities are performed
• B) providing top-down guidance to operating managers,supervisory personnel,and employees regarding how to alter past practice and how things need to be done now
• C) promoting the creation of a can-do 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) Two answers are correct: helping enforce consistency in how particular activities are performed,and providing top-down guidance to operating managers,supervisory personnel,and employees regarding how to alter past practice and how things need to be done now.

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Definitions:

Fixed Overhead

Costs that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Budget Variance

The difference between what was budgeted or planned in terms of financial performance or cost, and what was actually achieved.

Labor Efficiency Variance

The difference between the actual labor hours used and the standard hours expected for the level of production achieved.

Direct Labor

The cost of workers who are directly involved in the production of goods or the delivery of services.