The Degree to Which Decision Making Is Concentrated at a Single

question 52

Multiple Choice

The degree to which decision making is concentrated at a single point in an organization is called ________.

• A)unity of command
• B)chain of command
• C)span of control
• D)centralization

---

Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of production or sales, such as materials and labor directly involved in a product's manufacturing.

Units Sold

The total number of units of product sold within a specific time frame.

Conversion Costs

Costs that are incurred to convert raw materials into finished goods, which typically include labor and manufacturing overhead expenses.

Relevant Costs

Costs that should be considered when making business decisions because they will be affected by the decision.