Organisations Operating in External Environments That Have Little Significant Change

question 26

Multiple Choice

Organisations operating in external environments that have little significant change should:

• A) use an organic organisational design.
• B) promote a multicultural environment.
• C) have an ethical organisational culture.
• D) use a mechanistic organisational design.
• E) use a growth-oriented strategy.

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold or used.

Process Costing

A costing method used in industries where production is continuous, allocating costs to products based on the process they go through.

Assembly Department

A segment of a manufacturing process where components are put together to assemble a final product.

Process Costing

An accounting methodology used for homogenous products, where costs are accumulated to produce an average cost per unit across the entire production process.