Top Management Faces a Persistent Challenge to Make Sure That

question 162

Multiple Choice

Top management faces a persistent challenge to make sure that the performance evaluation model of lower level managers is:

• A)focused on short-term performance
• B)based solely on quantitative factors
• C)consistent with the decision model
• D)not consistent with the decision model

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities over a specified period.

Accounting Break-even

The point at which total revenues exactly equal total expenses, and there is no profit or loss, from an accounting perspective.

Financial Break-even

The point at which total revenue equals total costs and expenses, leaving the company with no net profit or loss.

Variable Cost

Costs that move in correspondence with the quantity of products made or services sold.