According to Burns and Stalker's Two Organizational Forms, Mechanistic and Organic

question 50

Multiple Choice

According to Burns and Stalker's two organizational forms, mechanistic and organic, their relative merits:

• A)Depend on the activities at stake and the stability of the environment
• B)Are unclear and depend largely on top managers
• C)Are immaterial, since there is no choice involved.
• D)Depend on the technologies employed in the industry

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Definitions:

Manufacturing Overhead

Expenses related to the manufacturing process that are not directly attributed to individual units produced, such as maintenance and factory supervision.

Machine-Hours

A measure of the time a machine is operated, used as a basis for allocating manufacturing overhead in some costing systems.

Predetermined Overhead Rate

A calculated rate designed for allocating manufacturing overhead expenses to specific production units, based on a selected activity base.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs. These costs include indirect materials, indirect labor, and other expenses.