Which of the Following Statements About the Management Pyramid Is

question 132

Multiple Choice

Which of the following statements about the management pyramid is true?

• A)All companies use the management pyramid structure.
• B)The span of management is clearly defined in the management pyramid.
• C)The person with the most formal authority is at the top of the pyramid.
• D)The management pyramid typically eliminates the need for a clear chain of command.
• E)The management pyramid typically eliminates the need for unity of command.

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Definitions:

Variable Cost

Costs that fluctuate in direct proportion to production or sales figures, including items like direct labor and raw materials.

Mixed Costs

Expenses comprising both fixed and variable components, changing in total with the level of activity but not proportionately.

Merchandising Firm

A business that purchases finished goods for resale in order to make a profit, differentiating itself from manufacturing firms and service firms.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.