Managers Tend to Favour the Alternative That Makes Their Performance

question 19

Multiple Choice

Managers tend to favour the alternative that makes their performance look best.This leads to conflicts between which of the following?

• A)the status quo and the chosen alternative
• B)the decision model and the performance evaluation model
• C)the constraining factor and the performance evaluation model
• D)gathering the required information and the performance evaluation model
• E)the accrual accounting model and the performance evaluation model

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Definitions:

Variable Cost

A cost that varies with the level of output or production activity, increasing as production increases and decreasing as production decreases.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs.

Terms Of Sale

Conditions agreed upon by the buyer and seller covering payment, delivery, and warranties, which define the responsibilities of each party in a transaction.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.