Span of Command Determines the Number of Levels and Managers

question 125

True/False

Span of command determines the number of levels and managers an organization has.

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Definitions:

Factory Overhead

All manufacturing costs that are not directly related to the production of a product or direct labor.

Direct Labor Hours

The cumulative hours that employees, who are directly engaged in the creation of products or services, have worked.

Overhead Rate

A calculation used to allocate indirect costs to products or services, typically expressed as a percentage of direct labor, materials, or another base.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific products or activities based on their use of resources.