The First Step in the Functional Similarity Method of Dividing

question 52

Multiple Choice

The first step in the functional similarity method of dividing jobs is to ________.

• A) designate appropriate activities that must be performed to reach desired objectives
• B) examine management system objectives
• C) make specific individuals responsible for performing specific jobs
• D) design specific jobs by grouping similar activities
• E) create an organization chart

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.

Fixed Manufacturing Overhead

Costs that do not change with the level of manufacturing output, including salaries of managers and depreciation of factory equipment.

Direct Labor-Hours

The total hours of labor directly involved in producing goods or providing services.

Direct Labor Rate

The cost per hour for labor directly involved in the production of goods or services.