The Primary Benefit Sought from Restructuring Is

question 69

Multiple Choice

The primary benefit sought from restructuring is

• A)cost reduction.
• B)employee involvement.
• C)increased morale.
• D)increased innovation.
• E)increased number of hierarchical levels in the organization.

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Definitions:

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, providing a more useful tool for performance evaluation.

Variable Costs

Costs that change in proportion to the level of activity or production volume, such as raw materials and direct labor.