Goal Congruence Exists When ________

question 130

Multiple Choice

Goal congruence exists when ________.

• A) short-run goals and long-run goals are the same
• B) employees respond to incentives created by a management control system and make decisions that help meet the goals of the organization
• C) the management control system reflects the organization's goals
• D) performance reports are used constructively

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Definitions:

Demand Coefficient

A numerical measure of the sensitivity of demand for a good or service to a change in one of its determinants, such as price, income, or the price of related goods.

Buyer Responsiveness

THe degree to which consumers change their demand for a product or service in response to changes in its price or attributes.

Fixed Costs

Business expenses that remain constant regardless of the level of production or business activity, such as rent, salaries, and loan payments.

Cross Elasticity

A measure of how the demand for one good responds to a change in the price of another good.