When False Rumors Occur in Organizations, the Best Strategy May

question 26

Multiple Choice

When false rumors occur in organizations, the best strategy may be

• A) to provide accurate information through the grapevine.
• B) to provide accurate information through formal channels of communication.
• C) to provide accurate information through the grapevine and through formal channels.
• D) to pinpoint the source of the rumors and reorganize the communication network.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Sales Price Variance

The difference between the actual selling price and the expected selling price of a product, multiplied by the number of units sold.

Fixed Overhead Budget Variance

The gap between the planned fixed overhead expenses and the real fixed overhead expenses that were realized.

Variance Reports

Financial documents that compare actual financial results to planned or budgeted amounts, highlighting discrepancies.