Scenario A

question 129

Multiple Choice

Scenario A. Mike is a new management trainee at Simply Swift, Inc., a firm that manufactures equipment used in wind technology, a complex and ever-changing industry. He has just graduated with his bachelor's degree in management and is anxious to use his education. He has nearly completed the first management rotation for Simply Swift and has some questions about how the organization is managed and how the principles of organization structure are used in the company. He believes there is too little specialization and that the span of control in the company is not optimal.
-Mike believes that there is too little specialization in the company.Therefore,he appears to favor

• A)low differentiation.
• B)high differentiation.
• C)less coordination.
• D)a new job.
• E)more levels in the hierarchy.

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Definitions:

Uncontrollable Costs

Costs that cannot be influenced or controlled by a manager under normal circumstances.

Work In Process Inventory Account

This is an account in the ledger that tracks the cost of inventory not yet completed, including materials, labor, and overhead costs.

Product Costs

Expenses directly associated with the creation of a product, including materials, labor, and overhead expenses.

Standard Costs

Predetermined costs for products, materials, labor, and overhead, used as benchmarks for assessing actual production costs.