In an Assembly Plant Where There Are 20 or 30

question 108

Multiple Choice

In an assembly plant where there are 20 or 30 employees doing identical, relatively simple work in the same geographic location with the need for minimal supervisory direction you are most likely to have ______ span of control.

• A) no
• B) wide
• C) narrow
• D) heavy
• E) light

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Definitions:

Absorption Costing

A system of accounting that encompasses the full range of manufacturing costs—direct materials, direct labor, and overheads both variable and fixed, within the cost framework of a product.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a net profit of zero.

Eastern Division

A geographical or operational segment of a larger organization designated to cover the eastern part of a country or area.

Fixed Expenses

Regular expenses that do not change in amount, such as rent or salaries.