Because of the Assumed Relationship Between Size and Importance,officials Tend

question 73

Multiple Choice

Because of the assumed relationship between size and importance,officials tend to press for larger budgets and more staff and office space.To justify growth,administrators and managers must come up with more tasks for workers to perform.This is an example of what type of problem associated with bureaucracies?

• A)inefficiency and rigidity
• B)trained incapacity
• C)bureaucratic personality
• D)resistance to change

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.

Cost of Goods Sold

The historical cost of products sold as reported in the income statement.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the profitability of a company's core activities.