Which of the Following Creates a Management System That Frees

question 10

Multiple Choice

Which of the following creates a management system that frees staff up to make appropriate decisions?

• A) Acceptance of accountability
• B) Clear and frequent communication
• C) Empowerment
• D) A climate of trust
• E) Well-articulated and instantiated values

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Definitions:

Margin Of Safety

Indicates the possible decrease in sales that may occur before an operating loss results.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of activity levels.

Break-Even Point

The juncture where the cumulative expenses equal total income, yielding neither a profit nor a loss.