Institutional Theory Suggests That

question 17

Multiple Choice

Institutional Theory suggests that:

• A) While organisational structures are initially varied, they are gradually homogenised by competition, the state and professions
• B) While organisational structures are initially homogenous, they are gradually varied by competition, the State and professions
• C) The organisational structure is determined by institutional factors such as management style and organisational culture
• D) The organisational structure is determined by the organisation's most powerful stakeholders

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Definitions:

Activity-Based Costing

A method in accounting that assigns costs to products or services based on the activities required to produce or deliver them.

Overhead Costs

Indirect costs associated with operating a business, such as utilities, rent, and administrative expenses, not directly tied to a specific product or service.

Arbitrary Allocations

The distribution of costs based on criteria that may not precisely reflect the actual consumption or benefit of those costs.

Process Cost Systems

An accounting method used to track production costs for continuous processes or where identical units are mass produced.