Top-Down Change Is Initiated and Directed by Top Management

question 42

Multiple Choice

Top-down change is initiated and directed by top management.It usually includes all of the following implications EXCEPT:

• A)Top-down change may be perceived as insensitive to the needs of lower-level personnel.
• B)Top-down change may encounter excessive resistance.
• C)Top-down change relies on the willingness of middle-level and lower-level managers to actively support top-management initiatives.
• D)Top-down change can be implemented effectively through the use of force.
• E)Top-down change may fail due to insufficient commitment of lower-level employees to changing.

---

Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or product line.

Fixed Manufacturing Overhead

Costs in the production process that remain constant regardless of the production volume, such as rent or salaries of permanent staff.

Inventories Deferred

Inventories or stock that are postponed or delayed from being recognized in the financial statements.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead.