What Is the Term Used to Describe the Situation When

question 74

Multiple Choice

What is the term used to describe the situation when a manager's decision, which benefits one subunit, is more than offset by the costs to the organization as a whole?

• A)suboptimal decision making
• B)dysfunctional decision making
• C)congruent decision making
• D)Both A and B are correct.

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Definitions:

Cost Structure

The composition of a company's costs, including fixed and variable costs, that affects its profitability.

Variable Costs

Costs that vary directly with the level of production output or service delivery.

Mixed Costs

Costs comprising both constant and fluctuating elements, altering in aggregate with activity levels yet not in direct correlation.

Per Unit Basis

Calculations or measurements made by dividing the total by the number of units to find the amount corresponding to a single unit.