Which of the Following Guidelines Helps Employees Know Exactly How

question 59

Multiple Choice

Which of the following guidelines helps employees know exactly how managers will determine whether an objective has been reached?

• A) Let people responsible for attaining objectives have a voice in setting them.
• B) State objectives as specifically as possible.
• C) Pinpoint expected results.
• D) Set objectives only in relation to other organizational objectives.
• E) Specify when goals are expected to be achieved.

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Definitions:

Cash Expenditures

Funds spent by a company or individual in cash form for operating activities, investments, and financing.

Explicit Costs

Direct, out-of-pocket payments made by firms for the use of inputs and resources in the production process.

Implicit Costs

Costs that represent the opportunity cost of using resources owned by the firm for its own production instead of earning income elsewhere.

Accounting Profit

The net income reported on the financial statements, calculated as total revenues minus explicit costs.