The Only Way to Ensure Excellent Results from a Decision

question 3

Multiple Choice

The only way to ensure excellent results from a decision is to ___________.

• A)faithfully follow the decision steps
• B)involve all stakeholders in the process
• C)involve objective outsiders to critique the process
• D)there is no way to guarantee an excellent result

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Definitions:

Direct Materials Costs

The expenses for raw materials that are directly used in the manufacturing 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 a unit of product.

Unit Product Cost

The calculated cost to produce one unit of a product, including direct materials, labor, and overhead.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.