The One Factor That Is Not Relevant for Company Managers

question 73

Multiple Choice

The one factor that is not relevant for company managers to worry about when their company has many unrelated firms,especially when they are very diverse is to

• A) stay abreast of what's happening in each industry and subsidiary.
• B) pick business-unit heads having requisite combination of managerial skills and know-how to motivate people.
• C) understand the true value of strategic investment proposals by business-unit managers.
• D) know what to do if a business unit stumbles.
• E) rely on the skills and expertise of business-level managers to build competitive advantage.

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Definitions:

Variable Costing

A cost accounting method that only includes variable production costs in the cost of goods sold, excluding fixed manufacturing overhead.

Net Operating Income

A measure of a company's profitability, calculated as the difference between its total revenue and its total operating expenses, excluding taxes and interest.

For The Month

A time-based reference indicating that an action, report, or measurement pertains to the duration of a specific month.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed production costs as period expenses.