An Organizational Structure Where the Owner Is the General Manager

question 73

Multiple Choice

An organizational structure where the owner is the general manager responsible for the activities in all the functions is known as _.

• A)simple structure
• B)functional structure
• C)network structure
• D)matrix structure
• E)departmentalization

Identify and explain the different types of variances, including price, quantity, rate, time, and volume variances.

Apply variance analysis in the context of managerial accounting to control costs and improve operational efficiency.

Interpret the significance of favorable and unfavorable variances in standard costing.

Differentiate between fixed and variable overhead costs and their impact on costs control.

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Definitions:

Payback Period

The length of time required to recover the cost of an investment, calculated by dividing the initial investment by annual cash inflow.

Initial Investment

The initial sum of money spent on starting a project, purchasing an asset, or establishing a business venture.

Annual Cash Inflow

Annual cash inflow is the total amount of money received by an individual or organization in one year from various sources, such as sales, investments, or financing activities.

Payback Method

A capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover its initial cost.