The Idea That Organizations Tend to Be More Effective When

question 83

Multiple Choice

The idea that organizations tend to be more effective when they are structured to fit the demands of the situation is known as the:

• A) Virtual organization
• B) Contingency approach
• C) Closed systems theory
• D) Mechanistic approach
• E) Cultural fit process

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced, including materials, labor, and energy costs.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent and salaries.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Variable Cost

Charges that directly correlate with the amount of goods produced or the level of output.