Which of the Following Is Not an Action Characteristic of an Organization

question 14

Multiple Choice

Which of the following is not an action characteristic of an organization in flux?

• A) replacing temporary workers with permanent ones
• B) reorganizing divisions
• C) downsizing operations
• D) subcontracting noncritical services and operations to other organizations
• E) selling off poorly performing divisions

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Definitions:

Departmental Contribution Margin

The difference between sales revenue and variable costs for a specific department, indicating its contribution to the overall profit.

Contribution Margin

The amount remaining from sales revenue after variable costs are subtracted, indicating how much contributes towards covering fixed costs and generating profit.

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as utilities, rent, and administrative expenses.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.