A Change in Organizational Structure That Results in a Negative

question 43

Multiple Choice

A change in organizational structure that results in a negative outcome is an example of

• A) a frozen preference
• B) group think
• C) recycling
• D) an unintended consequence

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Definitions:

Absorption Costing

A pricing strategy that incorporates all expenses associated with production - including raw materials, workforce wages, and both fluctuating and constant factory overheads - into a product's cost.

Period Cost

Expenses directly tied to time that are not directly tied to the production process, such as administrative expenses.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.