Dave Is the Director of Operations at Arc Inc

question 35

Multiple Choice

Dave is the director of operations at Arc Inc.and provides his team members with complete authority to execute all tasks independently.He encourages his team members to have brainstorming sessions before initiating a project to determine the best method to deliver positive results.This scenario indicates that Dave promotes _____.

• A) centralized decision making
• B) risk aversion
• C) downsizing
• D) outsourcing
• E) employee empowerment

---

Definitions:

Sales Price Variance

The difference between the actual selling price of a product and its budgeted or planned selling price, multiplied by the actual quantity sold.

Opening Stock

The value of goods available for sale at the beginning of an accounting period.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for more accurate forecasting and planning.

Indirect Labour Cost

Expenses related to employees that cannot be directly traced to specific products or services, such as maintenance staff or supervisors.