If Organizational Performance Is Not in Keeping with Expectations, the Recommended

question 5

Multiple Choice

If organizational performance is not in keeping with expectations, the recommended strategic approach is to

• A) check vulnerabilities
• B) develop new core competencies
• C) introduce cost cutting measures
• D) problem solve and undertake remedial action

---

Definitions:

Operating Income

The profit realized from a business's core operating activities, excluding costs and revenues from non-operating activities.

Variable Costing

An accounting methodology that only includes variable production costs (costs that change with the level of output) in product costs.

Absorption Costing

An accounting method that includes all of the costs associated with manufacturing a product in the cost of that product.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its operations.