The Danger of Oligarchy Is That Those Who Make Decisions

question 56

Multiple Choice

The danger of oligarchy is that those who make decisions may

• A)run the organisation as a bureaucracy.
• B)not have the necessary background to understand the full implications of their decisions.
• C)rely on informal mechanisms to get things done.
• D)suffer from disenchantment of the world.

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Definitions:

Variable Costing

An accounting method that only allocates variable costs to products, excluding fixed overhead costs.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities of the business.

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product (including variable and fixed overhead costs) are considered product costs.

Net Operating Income

The profit generated from a company's normal business operations, excluding expenses such as taxes and interest charges.