Differentiate Between Formal Position Authority and Informal Authority

question 6

Essay

Differentiate between formal position authority and informal authority. Provide an example of each.

Understand the concepts of variable costs and how they impact pricing and profit.

Calculate the total amount of fixed manufacturing cost incurred.

Calculate contribution margin per unit sold.

Determine total product and period costs for specific production volumes.

---

Definitions:

Income Tax Expense

Income tax expense represents the amount of money a company expects to pay in taxes based on its taxable income for the current fiscal year.

Comparative Balance Sheets

Financial statements that present the financial position of a company at different points in time, side by side, for comparison.

Net Income

The total profit remaining after all expenses, taxes, and costs have been subtracted from total revenue, indicating the financial performance of a company over a specified period.

Cash Flows

This term describes the total amount of money being transferred into and out of a business, particularly in terms of liquid assets.