Which of the Following Statements Is True Concerning Contingency Theory

question 49

Multiple Choice

Which of the following statements is true concerning contingency theory?

• A) Contingency theory reinforces scientific management's approach of the "one best way."
• B) Contingency theory suggests that managers must use the best management practice in all situations.
• C) Contingency theory suggests that no strategy is good or bad in and of itself, but instead depends on the situation.
• D) Contingency theory suggests that organizations that can learn faster than their competitors have an advantage in the marketplace.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Logistics Department

The division in a company that is responsible for the planning, control, and management of the movement and storage of goods.

Variable Costs

Outgoings that vary precisely in accordance with the quantity of production or output.

Fixed Costs

Constant expenses that remain stable regardless of changes in the business activity level, playing a crucial role in budgeting and financial planning.