The Normative Decision Theory______

question 113

Multiple Choice

The normative decision theory______ .

• A) states that the situation determines what leadership style to use
• B) assumes that certain inalienable characteristics determine the most effective leaders
• C) helps managers determine how much employee participation should be used in decision making
• D) assumes leader behavior can be fitted to subordinate characteristics
• E) assumes leaders are generally unable to change their leadership style

Apply the concepts of budgeting and variance analysis to different types of costs (variable, fixed) and activities (jobs, meals, flights, etc.).

Analyze the impact of changes in activity levels on budgeted and actual costs.

Determine the budgeted and actual cost given a cost formula and activity data.

Identify financial performance indicators from variances in budget reports.

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Definitions:

Nonrivalry

The idea that one person’s benefit from a certain good does not reduce the benefit available to others; a characteristic of a public good.

Nonexcludability

The inability to keep nonpayers (free riders) from obtaining benefits from a certain good; a characteristic of a public good.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning their use by one person does not reduce availability to others.

Consumption Goods

Products and services that are consumed by the ultimate consumer and do not serve as input for the production of other goods or services.