Identify a Situation That Could Usually Lead to a Conflict

question 5

Multiple Choice

Identify a situation that could usually lead to a conflict of interest.

• A)A manager has to choose between two of his best employees for the post of assistant manager.
• B)A sales supervisor has to allocate targets to her team members, based on revenue generation probability per region.
• C)A market analyst is asked to create a comparative growth forecast for four firms in an industry.
• D)A purchase manager in a company runs an operation that produces the raw materials required by the company.

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Definitions:

Manufacturing Costs

The total expenses involved in making a product, including direct materials, direct labor, and factory overhead.

Markup Percentage

The proportion added to the purchase price of products to cover operational costs and profit, which sets the retail price.

Total Cost

The complete expenditure incurred by a business, combining both fixed and variable costs to produce goods or services.

Variable Cost

Costs that vary directly with the level of production or sales, such as materials and labor.