Which of the Following Is a Difference Between a Line

question 98

Multiple Choice

Which of the following is a difference between a line function and a staff function?

• A) A line function does not contribute directly to creating a company's products, whereas a staff function contributes directly to creating a company's products.
• B) A line function includes accounting, human resources, or legal services, whereas a staff function includes activities that take place within the manufacturing and marketing departments.
• C) A line function can only be exercised by employees at the lower levels of the chain of command, whereas a staff function empowers employees at every level.
• D) A line function contributes directly to selling a company's products, whereas a staff function does not contribute directly to selling a company's products but instead supports line activities.

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Definitions:

Sales Increase

The rise in the volume or amount of sales over a specific period, reflecting business growth.

Net Operating Income

The profit generated from a company's core business operations after deducting all operating expenses except for interest and taxes.

Degree Of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales. Higher leverage indicates that a small change in sales can lead to a large change in operating income.

Contribution Format

A method of income statement presentation that separates variable costs from fixed costs, highlighting the contribution margin.