What Do the Solid Lines on an Organization Chart Show

question 49

Multiple Choice

What do the solid lines on an organization chart show in reporting relationships within a company?

• A) mission statement
• B) chain of command
• C) job specialization
• D) grapevine activity
• E) market share

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Definitions:

Direct Labour

The wages paid to workers directly involved in the production of goods or services, considered a variable cost.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before deducting interest and taxes.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.