The Receiving Department of Powen Has Three Activities: Unloading, Counting

question 31

Multiple Choice

The receiving department of Powen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:
$$\begin{array}{l}\text { Percentage of Time }\\\begin{array} { l c } \text { Activity } & \text { on Each Activity } \\\text { Unloading } & 25 \% \\\text { Counting } & 40 \% \\\text { Inspecting } & 35 \%\end{array}\end{array}$$
-Refer to the Figure.What is the cost of unloading?

• A)$50,500
• B)$52,000
• C)$54,000
• D)$56,000

Comprehend the principle that 'authority should equal responsibility' in delegation and its significance in organisational structure.

Analyse the impact of differentiation and integration in organisational design and functionality.

Recognise the importance of aligning organisational design with strategic orientation, objectives, and environmental uncertainty.

Assess the role of formal and informal structures in organisational design and management.

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Definitions:

Conflict of Interest

A situation in which a person's or entity's personal interest interferes with their ability to make impartial decisions.

Consortium

A group of companies or organizations that join together for a common purpose, often to undertake a substantial project beyond the resources of any single member.

Collusion

A secret agreement or cooperation between two or more parties for a deceitful, illegal, or fraudulent purpose.

Duty of Performance

An obligation in contract law requiring parties to complete their contractual obligations.