With Defensive Avoidance,a Manager "Acts" by _______ When He or She

question 70

Multiple Choice

With defensive avoidance,a manager "acts" by _______ when he or she can't find a good solution to a problem.

• A)doing nothing
• B)doing anything to get rid of the problem
• C)choosing the first available alternative that involves low risk
• D)procrastinating,passing the buck,or denying the risk of any negative consequences
• E)perhaps getting the police or legal authorities involved

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Definitions:

Variable Costing

A costing approach where only the variable costs involved in production—such as raw materials, direct labor, and variable manufacturing expenses—are included in the cost of goods sold, leaving out fixed manufacturing overheads.

Contribution Margin

The amount by which the sales of a product exceed its variable costs, representing the portion of sales revenue that contributes to covering fixed costs and generating profit.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.