In 2009, an Agricultural Company Introduced a New Cropping Process

question 7

Multiple Choice

In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sales in 2008 and 2009 were steady at $30 million, but the gross margin increased from 2.8% to 3.9% between those years, by what amount was the cost of sales reduced?

• A) $330,000
• B) $660,000
• C) $264,000
• D) $462,000

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Definitions:

Decision Acceptance

Involves the extent to which individuals or groups agree with and commit to a particular decision.

Decision Procedures

Established methods or steps followed in order to make thoughtful and effective decisions.

Delegation

The act of assigning tasks or responsibilities from a manager to a subordinate.

Top Executives

Individuals who occupy the highest management positions in an organization, responsible for making strategic decisions and overseeing the entire operation.