The opportunity cost of making a component part in a factory with no excess capacity is the: (CMA adapted)
A. fixed manufacturing cost of the component.
B. total manufacturing cost of the component.
C. net benefit foregone from the best alternative use of the capacity required.
D. variable manufacturing cost of the component.
Answer: C
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Which type of data refers to information that is developed or gathered by the researcher specifically for the research project at hand?
A) basic data B) primary data C) complex data D) secondary data E) standardized data
The most valid reason for using something other than a full-cost-based transfer price between units of a company is because a full-cost price
a. is typically more costly to implement. b. does not ensure the control of costs of a supplying unit. c. is not available unless market-based prices are available. d. does not reflect the excess capacity of the supplying unit.
In chapter 6 of your textbook, games characterized by conflict that is intense, pervasive, and briefly unstable, and found in organizations with strong external sponsorship are termed ____________.
a. Confrontation b. Shaky alliances c. Politicized organizations d. Complex political arenas
Which term below is a set of rules determining how each department will implement the strategic plan?
a. Functional strategy b. Organizational strategy c. Tactical strategy d. Divisional strategy