The Ability to Analyze and Diagnose a Situation and to Distinguish

question 90

Multiple Choice

The ability to analyze and diagnose a situation and to distinguish between cause and effect demonstrates a manager's:

• A) interpersonal skills.
• B) conceptual skills.
• C) human skills.
• D) technical skills.
• E) communication skills.

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Definitions:

Absorption Costing

A bookkeeping approach that encompasses all production expenses, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the price of a product.

Operating Income

The profit realized from a business's operations after subtracting operating expenses like wages, depreciation, and cost of goods sold.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed overhead as a period expense.

Activity Base

A measure used to assign costs in activity-based costing, reflecting the volume of activity that drives costs.