One Reason Why the Span of Control Tends to Be

question 221

Multiple Choice

One reason why the span of control tends to be smaller at upper levels in an organizational hierarchy is because

• A)in the managerial ranks, tasks are more routine.
• B)adequate time is necessary for informal mutual adjustment.
• C)coordination by direct supervision is easier.
• D)of the standardized nature of managerial work processes.
• E)recent trends in restructuring organizations have reduced the number of top management positions required.

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Definitions:

Cash Account

An account recording all cash transactions, including receipts and payments, reflecting the liquidity of a business.

Standard Cost System

An accounting method that uses predetermined costs for product costing, budgeting, and inventory valuation purposes.

Work in Process

Items that are in the process of being produced but are not yet completed in a manufacturing setting.

Standard Costs

Estimated costs of production, labor, and materials that are set in order to budget and control expenses.