In Using MBO, Objectives Should Be Set

question 128

Multiple Choice

In using MBO, objectives should be set

• A) by the supervisor.
• B) by the employee.
• C) jointly by the supervisor and the employee.
• D) by the accounting department.
• E) by top management.

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Definitions:

Segmented Income Statement

A financial statement that breaks down revenue, expenses, and profits by specific segments, departments, or products within a company.

Contribution Format

A method of income statement presentation where all variable costs are subtracted from sales to find the contribution margin, followed by the deduction of fixed costs to determine net operating income.

Traceable Fixed Expenses

Fixed costs directly associated with a specific department or product, which would disappear if the department or product were eliminated.

Break-even

The point at which total revenues equal total costs, resulting in no net loss or gain.