A Manager Continues to Undertake Projects That Have Been Successful

question 32

Multiple Choice

A manager continues to undertake projects that have been successful in the past instead of trying new projects. This aversion to risk will likely result in:

• A) changes in the environment.
• B) an increase in organizational inertia.
• C) an innovative culture.
• D) an increase in sales and profits.

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Definitions:

Cost Reconciliation Report

A document that analyzes and reconciles the differences between the cost of beginning inventory, the cost of goods manufactured, and the cost of goods sold.

Work in Process Inventory

Goods that are in various stages of completion in the production process but are not yet finished products.

Direct Method

An approach to costing that identifies the variable costs directly attributable to specific cost objects, like products or services.

Service Department Costs

Costs associated with the departments that do not directly produce goods but provide essential support services to production departments.