Craig Is the Manager of a Company That Is Opening

question 102

Multiple Choice

Craig is the manager of a company that is opening a new branch of operations in another country. In a meeting set up to inform his employees of this news, he focuses on how this move is going to make the company more profitable but fails to address the employees' fears for job security. In this case, Craig has communicated ineffectively because he has

• A) ignored his receivers' viewpoint.
• B) encoded his message.
• C) not eliminated feedback.
• D) failed to eliminate noise.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Variable Overhead

Variable overhead refers to costs that fluctuate with production levels, such as utilities and raw materials, unlike fixed overhead costs which remain constant regardless of production volume.

Fixed Overhead

Regular, consistent expenses not directly tied to production levels, such as rent, salaries, and insurance.

Direct Labor

The wages and benefits paid to employees who are directly involved in the production of goods or services.