Refer to the Scenario Below to Answer the Following Questions

question 125

Multiple Choice

Refer to the scenario below to answer the following questions.
Metro General Hospital (Scenario)
Joyce is the chief administrator in charge of a department at Metro General Hospital. When she worked as a registered nurse at a smaller community hospital, Joyce enjoyed the flexible structure, minimal rules, and team approach to decision making by nurses, administrators, and doctors. However, the situation at Metro is different. Metro has a tall, rigid structure with many rules and procedures designed to standardize jobs and guide employee behaviour. One such rule requires that all decisions in Joyce's department must be signed off by her alone) As a result, Joyce seems to spend most of her time filling out forms and signing documents. She also feels that the numerous levels of hierarchy are unnecessary and place barriers between herself and her staff. Joyce is not exactly sure why things have to be so "organized" and is planning to talk to her boss about making some changes to increase flexibility and reduce the number of rules and procedures.
-The many rules and policies designed to standardize jobs relates most closely to which of the following elements of structure?

• A) chain of command
• B) span of control
• C) departmentalization
• D) unity of command
• E) formalization

Grasp the process of standard costing, including setting standards and analyzing variances.

Develop the ability to prepare basic journal entries for variances and standard cost transactions.

Acquire the skill to prepare a budget for factory overhead costs at different levels of capacity.

Understand the concept of standard hours and their use in variance analysis.

---

Definitions:

Indirect Method

This method is utilized in financial accounting to calculate cash flows from operating activities by starting with net income and adjusting for changes in balance sheet accounts.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profit.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Indirect Method

A cash flow statement presentation technique where net income is adjusted for changes in balance sheet accounts to calculate operating cash flow.