The Line of Authority That Extends from the Upper Levels

question 57

Multiple Choice

The line of authority that extends from the upper levels of management to the lowest levels of the organization is called the__________ .

• A) unity of command
• B) authorized line of responsibility
• C) chain of command
• D) responsibility factor

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (direct and indirect) in the cost of a product.

Total Period Cost

The sum of all costs, both fixed and variable, incurred during a specified period of time, excluding product manufacturing costs.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Net Operating Income

A company's revenue minus its direct costs and operating expenses, indicating the profitability from regular operations before interest and taxes.