Which of the Following Statements Best Describes the Management Pyramid

question 81

Multiple Choice

Which of the following statements best describes the management pyramid?

• A) The span of management is clearly defined in the management pyramid.
• B) The management pyramid typically eliminates the need for a clear chain of command.
• C) The person with the most formal authority is at the top of the pyramid.
• D) All companies use the management pyramid structure.

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Definitions:

Fixed Overhead

Regular, fixed expenses associated with the operations of a business that do not vary with production volume.

Raw Material

Basic materials used in the production process of goods, often processed in intermediate steps before fabrication of the final product.

Fixed Overhead

Charges that keep the same level despite the degree of manufacturing or sales activities, including space rental, worker wages, and protection plans.

Predetermined Overhead Rate

An estimated overhead cost rate used in cost accounting to allocate overhead expenses to products or job orders.