____________ Establishes the Chain of Command,that Is,the System of Common

question 7

Multiple Choice

____________ establishes the chain of command,that is,the system of common supervision among positions and units within the organisation.

• A) Span of control
• B) Formalisation
• C) Job specialisation
• D) Departmentalisation

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Definitions:

FIFO Method

"First-In, First-Out," an inventory valuation approach where the first items acquired are the first ones sold, affecting the cost of goods sold and inventory valuation.

Process Costing

An accounting method used to calculate the cost of a process, or series of processes, through which a product moves, assigning average costs to each product unit.

Equivalent Units

A term used in cost accounting to express the amount of production output in terms of fully completed units of output.

Conversion Costs

The costs required to convert raw materials into finished products, including direct labor and manufacturing overhead.