The Head of the Finance Function at ABC International Employs

question 53

True/False

The head of the finance function at ABC International employs a larger staff than is required for efficiency to reduce work pressures inside the department and to bring the manager higher status.This is known as organizational slack.

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Definitions:

Marginal Unit

The additional unit of a good or service, used in economics to analyze the cost or benefit of producing one more unit.

Quantity Discounts

Discounts offered by suppliers to buyers for purchasing large amounts of a product, incentivizing bulk purchases.

Breakpoint

In computing, a breakpoint is a deliberately inserted pause or halt in a program's execution for debugging purposes. In economics, it refers to a level at which there is a change in the rate or conditions of a process or system.

Holding Cost Percentage

Represents the cost incurred to store inventory over a period, expressed as a percentage of the inventory's total value, including expenses such as warehousing, insurance, and depreciation.