Matthew Is a New Divisional Manager

question 11

Multiple Choice

Matthew is a new divisional manager. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
-The question of span of control determines ________.

• A) the employee grievance policy of the organization
• B) the number of levels and managers an organization has
• C) where decisions are made
• D) how jobs will be grouped
• E) how employees will be compensated

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Marginal Cost

The escalation in the entire cost linked to the output of an additional unit.