Which Test of Whether an Organization Is Well Designed Relates

question 4

Multiple Choice

Which test of whether an organization is well designed relates to what extent layers of management are necessary to provide focus, direction, or coordination for the units in their scope?

• A) Specialist cultures test
• B) Difficult-links test
• C) Redundant hierarchy test
• D) Accountability test

---

Definitions:

Work in Process Inventory

The value of partially completed goods that are still in the production process at a given point in time.

Underapplied Overhead

The situation where the allocated manufacturing overhead is less than the actual overhead incurred, leading to an adjustment need in accounting records.

Adjusting Entry

An accounting journal entry made to amend the preliminary financial records before preparing financial statements.

Manufacturing Overhead

Indirect costs related to manufacturing, including utilities, rent for manufacturing facilities, and equipment maintenance, not directly tied to individual units produced.