Henry Fayol Believed That in Order to Increase the Efficiency

question 9

Multiple Choice

Henry Fayol believed that in order to increase the efficiency of the management process, it is essential that

• A)authority should be concentrated at the top of the chain of command.
• B)managers should discourage creativity in employees so that they stay focused on their jobs.
• C)there should be a greater number of levels in a managerial hierarchy.
• D)managers should not have the right to give orders to employees; they should only give polite instructions.
• E)all organizational members are entitled to be treated with justice and respect.

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Definitions:

Overapplied Overhead

Occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred, leading to adjustments in cost accounting records.

Overhead Rate

The ratio of indirect costs to a base activity, used to allocate overhead costs to products or job orders.

Work In Process

Partially finished goods that are in the midst of the production process, not yet ready for sale but representing a portion of inventory.

Direct Labor

The wages and related costs for personnel who are directly involved in the production process of a company's products or services.