A Building Contractor Follows the Network Organization Model When He

question 50

Multiple Choice

A building contractor follows the network organization model when he does which of the following?

• A)does the framing and tiling by himself
• B)hires three workers to help with framing
• C)gives orders to workers
• D)farms out the plumbing to a plumbing firm

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Definitions:

Variable Costing

A method of inventory costing that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Net Operating Income

Income from a company's operations, calculated by subtracting operating expenses from operating revenue, excluding income and expenses from non-operating activities.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue, indicating the efficiency of a company in managing its production and labor costs.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest, providing a measure of profitability from its core business activities.