All Other Things Being Equal, as the Span of Control

question 137

Multiple Choice

All other things being equal, as the span of control grows wider, the organization becomes __________.

• A) more bureaucratic
• B) less effective
• C) more organic
• D) more efficient
• E) more mechanistic

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Definitions:

Book Value

A rephrased definition: The net value of an asset or liability recorded on the financial statements, factoring in depreciation, amortization, and impairment, but not necessarily indicative of market value.

Activity-Based Method

An accounting method that assigns costs to products or services based on the activities and resources that go into producing them, to more accurately reflect the costs associated with each product or service.

Usage Hours

A measure of the time that an asset is actively used in production or operations.

Activity Method

A depreciation method where the asset’s expense is based on its usage or activity level, rather than the passage of time.