Bureaucratic Controls Refer To

question 7

Multiple Choice

Bureaucratic controls refer to:

• A) formalized supervisory and behavioral rules and policies that are designed to ensure consistency across units.
• B) those activities that promote creativity in an organization.
• C) procedures that are not beneficial to an organization.
• D) formalized supervisory and behavior controls that must be sought out in a firm and eliminated.

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Definitions:

Telephone Costs

Expenses related to the usage of telecommunication services by a business, categorized as utility expenses and recorded in the income statement.

Margin Of Safety

The difference between actual or projected sales and the break-even point, measuring operational risk and efficiency.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Contribution Margin Ratio

The percentage of each sales dollar that contributes to covering fixed costs and generating profit.