Unity of Command and the Scalar Principle Are Both Closely

question 55

Multiple Choice

Unity of command and the scalar principle are both closely related to the:

• A) amount of work specialisation in an organisation
• B) degree of formalisation
• C) chain of command
• D) amount of bureaucracy in the organisation
• E) matrix structure.

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Definitions:

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary directly with production volume, such as supplies and indirect labor.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, property taxes, and salaries of permanent employees.

Variable Manufacturing Overhead

Costs of manufacturing that fluctuate with the level of production, such as utilities or commissions, excluding direct materials and direct labor.

Fixed Manufacturing Overhead

Indirect production costs that remain constant, regardless of the level of production output, such as salaries or rent.