James Is Talking to Another Supervisor About the Number of Employees

question 38

Multiple Choice

James is talking to another supervisor about the number of employees who report directly to him.James is talking about his:

• A)span of control.
• B)informal organisation.
• C)organisational structure.
• D)chain of command.

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Definitions:

Period Costs

Expenses that are not directly tied to production and are expensed on the income statement in the period they are incurred, such as selling and administrative expenses.

Prepaids Insurance

Prepaid insurance refers to insurance premiums that are paid in advance and represent a future economic benefit for the period they cover.

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the production of goods.

Incurred

Refers to costs or expenses that have been realized or experienced by a business as a result of its operations.