An Advantage of a Line Organization Is That It Usually

question 81

Multiple Choice

An advantage of a line organization is that it usually:

• A)Makes effective use of managerial specialists.
• B)Provides stability over several generations of management.
• C)Separates planning and operating activities.
• D)Results in quite a bit of managerial "buck-passing."
• E)None of these typically occurs in a line organization.

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Definitions:

Service Firm

A business that provides intangible products or services to consumers or other businesses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, contributing to covering fixed costs and generating profit.

Machine Hours

A measure of production time, corresponding to the total hours that machines are in operation.

Controllable

Costs or factors that can be adjusted or influenced by the actions of a company or individual within a particular timeframe.