How Does Seasonality Create Fluctuations in a Firm's Net Income

question 45

Multiple Choice

How does seasonality create fluctuations in a firm's net income over a year?

• A) Cost of goods sold will rise and fall along with sales, while administrative and other costs will remain relatively steady.
• B) Cost of goods sold will rise when sales fall, and vice versa, while administrative and other costs will remain relatively steady.
• C) Cost of goods sold, along with administrative and other costs, will rise when sales fall, and vice versa.
• D) Cost of goods sold, along with administrative and other costs, will rise and fall along with sales.

Describe the organization system in terms of inputs, throughputs, and outputs.

Understand the concept and importance of Total Quality Management in organizations.

Distinguish between internal and external perspectives in understanding human behavior.

Acknowledge the importance of structured practice and feedback in skill development.

---

Definitions:

Disciplinary Action

Measures taken by an employer to correct an employee’s misconduct or performance issues.

Communicate Rules

The process of conveying guidelines, policies, or regulations to ensure they are understood and followed within an organization or community.

Employee Discipline

The system of rules and strategies employed by businesses to manage employee behavior and ensure compliance with company policies.

HR Department

The department within an organization that is responsible for hiring, training, employee relations, and ensuring compliance with employment laws.