The Following Five Examples Describe Different Types of Relationships Between

question 173

Multiple Choice

The following five examples describe different types of relationships between employees in XYZ Company.Which set of relationships indicates the existence of a shadow organization?

• A)Department managers report directly to the vice presidents in charge of their division.
• B)An employee asks questions of an immediate supervisor,gets answers,and works closely with this person.
• C)In one department,superior-subordinate relationships are strained.Subordinates take direction from the manager of another department.
• D)Members of a word processing pool provide secretarial services for all divisions on a first come,first served basis.
• E)The company president delegates authority to division managers,division managers delegate authority to department managers,and department managers delegate authority to support staff.

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Definitions:

First-In, First-Out

An inventory valuation method where the oldest inventory items are recorded as sold first, ensuring that the costs recorded are of the oldest products.

Assembly Department

A specific section in a manufacturing company where parts are assembled into final products.

Conversion Costs

The combined cost of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished goods.

First-In, First-Out

An inventory valuation method where the costs of the earliest goods purchased or produced are the first to be recognized in determining cost of goods sold.