In Any Organization,for-Profit or Not-For-Profit,span of Control Refers to the

question 69

Multiple Choice

In any organization,for-profit or not-for-profit,span of control refers to the

• A) number of managers at the highest levels in the organization.
• B) the CEO and his or her management team.
• C) the number of subordinates who report directly to one manager.
• D) the number of supervisors in a specific segment of a manufacturing activity.
• E) none of these choices.

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Definitions:

Contra-Revenue Accounts

Accounts used to record reductions in gross revenue, such as sales returns, allowances, and discounts, to arrive at net revenue.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from total sales revenue, representing the efficiency of a company in managing its production and sales.

Perpetual System

An inventory system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period for accurate financial reporting.