The _____ Refers to a Chain of Authority Extending from Top

question 80

Multiple Choice

The _____ refers to a chain of authority extending from top to the bottom of the organization and including every employee.

• A) unity of command
• B) division of labor
• C) unity of direction
• D) scalar chain
• E) none of these

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Definitions:

Contribution Margin Ratio

A financial indicator demonstrating the proportion of sales income that is not absorbed by variable expenses, hence aiding in the coverage of fixed costs.

Fixed Monthly Expenses

Costs that do not vary in the short term, regardless of business volume or activity levels, and are incurred on a monthly basis.

Net Operating Income

The profit generated from a company's everyday business operations, calculated by subtracting operating expenses from revenue.

Contribution Format

A profit reporting format that separates fixed and variable costs, highlighting the contribution margin.