Reporting Relationships Within a Company Are Indicated on an Organization

question 67

Multiple Choice

Reporting relationships within a company are indicated on an organization chart and represent

• A) organizational structure.
• B) mission and strategy responsibility.
• C) areas of specialization.
• D) chain of command.
• E) decision-making responsibility.

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Definitions:

Fixed Costs

Fixed costs are business expenses that do not change in proportion to the volume of goods or services produced or sold.

Make or Buy

A decision-making process regarding whether to produce goods in-house or purchase them from an external supplier.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as factory rent and salaries of supervisory staff.

Direct Labor Cost

A rephrased definition: The cost incurred from the labor of workers who actively contribute to the manufacturing or creation of a product.