According to Strategic Reference Point Theory, Managers Have Two Basic

question 44

Multiple Choice

According to strategic reference point theory, managers have two basic strategic alternatives. They are_____________ .

• A) risk-avoiding strategy and pioneering strategy
• B) risk-maintenance strategy and conflict-avoidance strategy
• C) risk-avoiding strategy and risk-seeking strategy
• D) frontal attack strategy and guerilla strategy
• E) none of these

---

Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs like rent, utilities, and maintenance of equipment.

Selling and Administrative Expenses

These are indirect costs that are not directly tied to the production of goods or services, including sales personnel salaries, advertising, and office rent.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Administrative Costs

Expenses related to the general administration of a business, including salaries of executives, office supplies, and legal and accounting services.