Which of the Following Is a Disadvantage of a Focus

question 81

Multiple Choice

Which of the following is a disadvantage of a focus on return on investment?

• A)It can encourage managers to focus on cost-cutting efforts.
• B)It can produce a narrow focus on divisional profitability at the expense of profitability for the overall firm.
• C)It can encourage managers to cut inventories and reduce overall investment.
• D)It can encourage managers to focus on the long run at the expense of the short run.

Understand the implications of classical and operant conditioning principles in real-world settings, such as education, therapy, and work environments.

Understand how secondary reinforcers derive their power from association with primary reinforcers.

Recognize examples of conditioned taste aversion and biological preparedness.

Identify and explain the phenomenon of insight learning.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activities.

Periodic Inventory System

An accounting method where inventory is updated and cost of goods sold is calculated at the end of an accounting period.

FIFO

FIFO stands for "First-In, First-Out," an inventory valuation method where goods first acquired are sold or used first, ensuring that older inventory is used before newer inventory.

Ending Inventory

The aggregate worth of merchandise ready for purchase at the conclusion of a financial period.