What Type of Plan Enables Managers to Make Midcourse Corrections

question 4

Multiple Choice

What type of plan enables managers to make midcourse corrections if environmental changes warrant or to change the thrust of the plan altogether if it no longer seems appropriate?

• A)A standing plan
• B)A long-term plan
• C)A rolling plan
• D)A contingency plan
• E)A strategic plan

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Definitions:

Manufacturing Company

A company that uses raw materials, components, and parts to produce finished goods through the use of labor, machines, and equipment.

Unit Contribution Margin

The measured profit that each unit sold contributes toward fixed costs and profit, calculated by subtracting variable costs from the sales price per unit.

Operating Income

Earnings before interest and taxes (EBIT), which represents the profit a company earns from its core operations.

Fixed Costs

Overhead expenses that remain constant regardless of the volume of activity or production levels within a company.