The Structural Contingency Theory Is Based on the Assumption That

question 6

True/False

The structural contingency theory is based on the assumption that organizations choose structures to help them perform better - provide high quality, low costs, and so forth.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, reflecting the portion of sales that helps cover fixed costs and generate profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as lease payments and salaries of permanent staff.

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Variable Expenses

Costs that vary in direct proportion to changes in an organization's activity level or volume of output.