An Organization Which Considers and Analyzes the Ideas and Suggestions

question 26

Multiple Choice

An organization which considers and analyzes the ideas and suggestions of all employees regardless of their hierarchical position has a(n) _____ culture.

• A) vertical
• B) innovative
• C) conservative
• D) traditional
• E) regressive

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Definitions:

Variable Costing

Variable costing is a costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Fixed Manufacturing Overhead

Consistent costs associated with manufacturing that do not vary with the level of production, such as rent and salaries of managers.

Variable Costing

An accounting method that charges all variable production costs directly to the cost of production, excluding fixed overhead costs from product costing.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of managers, and depreciation of equipment.