The Purpose of Managing by Walking Around Is to

question 65

Multiple Choice

The purpose of managing by walking around is to

• A) learn more about company operations and see how activities are really being done.
• B) gather information about what is happening from people at different organizational levels and learn firsthand how well the strategy execution process is proceeding.
• C) give employees a chance to make suggestions for improvement.
• D) gather information about what strategy to follow and to learn what competitors are doing.
• E) be visible and accessible to employees.

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Definitions:

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to the cost of producing or purchasing the product.

Differential Profit

The change in profit resulting from choosing one option over another in decision-making processes.

Fixed Expenses

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Variable Factory Overhead

Expenses in a factory that vary with the level of production output, such as utility costs and materials.