Which of the Organization Models Follows All of Fayol's Traditional

question 306

Multiple Choice

Which of the organization models follows all of Fayol's traditional management rules?

• A)Line organizations
• B)Line-and-staff organizations
• C)Cross-functional teams
• D)Matrix

Understand the concept of contribution margin and contribution per machine hour.

Comprehend the principle of target costing.

Calculate desired profit margin and understand its application in pricing.

Understand the relationship between current full cost, profit margin, and target selling price.

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Definitions:

FIFO Cost Flow

An inventory valuation method in which the costs of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Current Costs

These are the costs that are associated with the purchase or production of goods and services in the current period.

Current Revenues

Income recognized by a business within its fiscal year, typically from its main operations.

LIFO Cost

An inventory valuation method that assumes the last items placed in inventory are the first sold, implying newer inventory remains unsold.