The Concept That Defines the Number of Subordinates That Report

question 69

Multiple Choice

The concept that defines the number of subordinates that report to a manager and that indirectly specifies the number of levels of management in an organization, is called ________.

• A) authorized line of responsibility
• B) span of control
• C) unity of command
• D) responsibility factor

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Definitions:

Fixed Manufacturing Overhead

Costs related to the production that remain constant regardless of the level of manufacturing activity, such as building lease payments or salaries of permanent staff.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus liabilities and intangible assets.

Equipment Replacement

The process of substituting old, outdated, or failed machinery with newer, more efficient models or versions to maintain or enhance production efficiency.

Opportunity Costs

The benefit lost when one alternative is chosen over another, representing the cost of forgoing the next best alternative.