Which of the Following Steps Can a Management Take to Reduce

question 102

Multiple Choice

Which of the following steps can a management take to reduce the undesirable effects of absorption costing?

• A) It can evaluate managers on quarterly basis rather than the usual yearly period thereby mitigating the undesirable effects of absorption costing.
• B) It can delegate powers to managers to decide which orders they want to accept so that any order which will lead to inventory build-up can be rejected.
• C) It can empower managers to decide the timings of maintenance of plants thereby ensuring that the production is not affected.
• D) It can encourage using nonfinancial measures such as units in ending inventory compared to units in sales.

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Definitions:

Psychographic Segmentation

Psychographic Segmentation is a marketing strategy that divides consumers into sub-groups based on shared psychological characteristics, lifestyles, or interests.

Reciprocity

An exchange where two parties provide mutual benefits or favors to each other, often fostering cooperation and positive social behavior.

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is the decision-making process by which businesses identify, evaluate, and purchase goods and services to fulfill their needs.