Discuss the Six Elements That Need to Be Addressed When

question 74

Essay

Discuss the six elements that need to be addressed when designing an organizational structure.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales, such as materials and labor directly involved in manufacturing.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good or service.

Fixed Input

An input whose quantity is constant and cannot be changed in the short run.

Short Run

A period in economics during which some factors of production are fixed, limiting the ability of a business to fully adjust to market changes.