An Organizational Structure Becomes Taller When It

question 51

Multiple Choice

An organizational structure becomes taller when it

• A)grows in size and the hierarchy of authority lengthens.
• B)maintains its original size and the hierarchy remains constant.
• C)hires more employees while keeping the same number of managers.
• D)expands its product base but maintains its staff size.

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Definitions:

Period Cost

Expenses incurred by a business that are not directly tied to the production process, often including administrative and sales expenses.

Direct Materials

Raw materials that are directly used in the production of a product, easily traceable to the finished product.

Bakery

A place where bread, cakes, cookies, and other baked goods are made or sold.

Factory Overhead Cost

Every cost involved in manufacturing that isn't categorized as direct labor or direct materials.