Systems Theorists

question 2

Multiple Choice

Systems theorists:

• A) are similar to behavioral and classical theorists in the way they conceptualize the organization and its problems.
• B) break the organization into its component parts to understand the whole.
• C) focus on viewing the organization as a whole and as the interrelationship of its parts.
• D) focus on people.

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Definitions:

Net Incomes

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Variable Costing

A pricing strategy that incorporates solely the variable costs associated with production—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of goods sold, while omitting fixed overhead expenses.

Absorption Costing

A method of accounting that incorporates all costs associated with manufacturing, including direct materials, direct labor, as well as both variable and fixed overhead expenses, into the product's cost.

Variable Costing

A costing method that includes only variable manufacturing costs—direct labor, direct materials, and variable manufacturing overhead—in unit product cost.