OFC Is a Small, Family-Owned Business That Manufactures and Markets

question 51

Multiple Choice

OFC is a small, family-owned business that manufactures and markets fruit spreads. Every day at break time, the owner of the company randomly selects a jar from inventory to serve to employees. Each employee samples the spread and evaluates its quality. This is an example of ___.

• A) planning
• B) organizing
• C) leading
• D) controlling
• E) delegating

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Definitions:

Avoidable Costs

Expenses that can be eliminated if a particular decision or activity is discontinued.

Time-Driven

Refers to a method or process that is triggered or determined by the passage of time.

Activity-Based Costing

A methodology for calculating costs that distributes overhead and indirect expenses to products and services relative to the activities they utilize.

Customer Cost Analysis

The process of analyzing the costs related to acquiring and serving a customer, often to determine profitability.