A Company That Has Low Formalization, Is Decentralized, and Has

question 178

Multiple Choice

A company that has low formalization, is decentralized, and has high participation from employees in decision making is considered to have a(n) ________ structure.

• A) organic
• B) mechanistic
• C) market
• D) product

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Definitions:

Standard Variable Overhead Rate

A predetermined rate used to allocate variable overhead costs to units of production, based on expected activity levels.

Practical Standards

Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.

Standard Quantity

This term refers to the amount of input (materials, labor, etc.) that should be used in the production of a unit of goods under normal conditions.

Standard Price

A pre-determined cost allocated to a single unit of product or service, used for budgeting and performance evaluation.