According to Chester Barnard,which of the Following Statements Is True

question 29

Multiple Choice

According to Chester Barnard,which of the following statements is true about a zone of indifference? 

• A) ​In this zone, managerial requests are not understood. 
• B) ​In this zone, managerial directives are inconsistent with the purpose of an organization. 
• C) ​In this zone, managerial requests are automatically accepted. 
• D) ​In this zone, managerial authority is challenged.

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Definitions:

Contribution Format

A method of income statement presentation where all variable costs are subtracted from sales to find the contribution margin, followed by the deduction of fixed costs to determine net operating income.

Traceable Fixed Expenses

Fixed costs directly associated with a specific department or product, which would disappear if the department or product were eliminated.

Break-even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Sales Dollars

The total monetary value of sales transactions made within a specific period, reflecting the revenue generated from selling goods or services.