When Sam, a Manufacturing Manager, Realized That an Important Shipment

question 31

Multiple Choice

When Sam, a manufacturing manager, realized that an important shipment might be late, he asked the assistant manager for her ideas and input. Sam decided alone what changes to make to the shipping schedule. According to the decision-making model, Sam used the __________ decision making style.

• A) autocratic I
• B) autocratic II
• C) consultative I
• D) consultative II

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Definitions:

Manufacturing Overhead

Represents all the indirect costs associated with the production process of a company, including utilities, depreciation, and salaries not directly tied to specific units of product.

Direct Labor

The cost of wages and benefits for employees directly involved in the production of goods or services.

Raw Materials

The initial inputs in production, including basic substances used to manufacture goods.

Direct Labor

The cost of wages for the employees who are directly involved in producing a product or delivering a service.