Which of the Following Is Most Likely to Increase the Bureaucratic

question 62

Multiple Choice

Which of the following is most likely to increase the bureaucratic costs?

• A) changing the organization structure from functional to divisional
• B) decreasing the number of managers
• C) increasing the number of hierarchical levels
• D) decreasing the level of standardization

---

Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, indicating how much contributes towards fixed costs and profit.

Target Profit

The desired amount of net income a company aims to achieve for a certain period as part of its financial and strategic planning.

Monthly Fixed Expense

Costs that do not vary with the level of production or sales in a given period, such as rent or salaries, accruing on a monthly basis.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the buffer against losses.