A Company Is Planning to Revise Its Organizational Structure and One

question 54

Multiple Choice

A company is planning to revise its organizational structure and one of the managers suggests increasing employee empowerment by giving them more decision-making authority.Which of the following,if TRUE,would support his stand?

• A)The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility.
• B)The company's front-line workers have first-hand knowledge of what can and cannot be done.
• C)The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.
• D)The company culture revolves around the founder who is charismatic and in-charge kind of CEO.

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Definitions:

Operating Cost

Expenses associated with the day-to-day functions of a business, excluding the cost of goods sold (COGS).

Useful Life

The estimated duration of time that an asset is expected to be usable for its intended purpose.

Target Costing

A pricing strategy in which a company determines the potential selling price of a product before designing it and then subtracts a desired profit margin to arrive at a target cost.

Desired Profit

The target amount of net income that a company aims to achieve in a specific period.