A Measure of the Appropriateness of the Goals That Managers

question 40

Multiple Choice

A measure of the appropriateness of the goals that managers have selected for the organization to pursue and the degree to which the organization achieves those goals is ________.

• A) efficiency
• B) reliability
• C) utility
• D) effectiveness

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Definitions:

Cost-Volume-Profit

An analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Volume

The total quantity of products or services sold by a company during a specific period of time.

Contribution Margin Ratio

The percentage of each sales dollar that contributes to covering fixed costs and generating profit.

Products

Goods or services that are created through a business process and offered in the market to satisfy the needs or wants of customers.