An Advantage of Flatter Organizations Is That They

question 12

Multiple Choice

An advantage of flatter organizations is that they:

• A) tencourage non-value-added activities.
• B) promote the micromanagement of frontline workers.
• C) create more supervisory tasks and responsibilities for managers.
• D) improve communication between top managers and frontline employees.

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Definitions:

Direct Materials Used

The quantity and cost of raw materials consumed in the production of finished goods.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, rent, and salaries of support staff.

Total Manufacturing Costs

The aggregate cost of direct material, direct labor, and manufacturing overhead incurred in the production process.

Product Cost

The total amount of costs associated with creating a product, including raw materials, labor, and overhead expenses.