The Walt Disney Organization Eliminated an Unnecessary Layer in the Hierarchy

question 13

True/False

The Walt Disney organization eliminated an unnecessary layer in the hierarchy, but this resulted in a span of control that was too wide, hindering decision making.

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Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Break-Even Point

The point at which total revenues equal total costs, resulting in no profit but no loss.

Batch Cost

The total cost associated with producing a set or batch of goods.

Activity-Based Costing Systems

Accounting systems that assign costs to products or services based on the activities they require, aiming for more accurate cost information.