Danny, the Manager of Wader Shoes, Installed New Machinery to Speed

question 63

Multiple Choice

Danny, the manager of Wader Shoes, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Danny is ________.

• A) establishing the standards of performance
• B) measuring the actual level of performance of employees
• C) evaluating the result of the set standards
• D) initiating corrective actions

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Definitions:

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.

Cash Inflows

This term refers to the money coming into a business from its operational, financing, and investing activities.

Assets

Resources owned or controlled by a business, entity, or individual, with future economic value that can be measured and expressed in financial terms.

Externalities

Effects a project has on other parts of the firm or on the environment.