While the Sales Manager May Be Ecstatic to Learn He

question 109

Essay

While the sales manager may be ecstatic to learn he has beaten his sales goal,the production manager may not share that enthusiasm because having more sales than anticipated required overtime for workers and additional maintenance on some machinery.Managers use budgeting to control and evaluate their operations.Two types of budgets that are discussed in chapter 6 are the static budget and the flexible budget.How do the two budgets differ and explain how the flexible budget is used in evaluating performance.

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Definitions:

Standards

Standards are established guidelines or specifications designed to ensure products, services, and processes are consistent, reliable, and fit for their intended purpose.

Corrective Action

Measures taken to identify and rectify a problem or deviation from a set standard or expectation.

Organizational Performance

An analysis of a company's efficiency, effectiveness, and ability to meet its goals and objectives.

Transformational Leadership

A leadership style that transforms and motivates followers by appealing to their higher ideals and moral values, often producing significant changes within the organization.