The Line of Authority That Moves from the Top of a Hierarchy

question 124

Multiple Choice

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

• A)chain of logic.
• B)chain of command.
• C)organizational design.
• D)delegation of authority.

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Definitions:

Average Cost

refers to the total cost of production divided by the number of units produced, also known as unit cost.

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributed to the production of the goods sold by a company, including material and labor costs, but excluding indirect expenses.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting cost of goods sold.

Perpetual Inventory Account

An accounting method that records inventory purchases and sales in real time, providing a continuously updated inventory balance.