If the Span of Control Is Too Narrow in an Organization

question 11

Multiple Choice

If the span of control is too narrow in an organization, an organization may become too

• A) broad and difficult for one manager to give support to all individuals who work for them in the organization.
• B) top heavy with time wasted in unnecessary communication up and down the chain of command.

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Definitions:

Labor Costs

The total amount of money a business spends on employee salaries, wages, and other benefits.

Individual Job

Definition: A distinct task or project undertaken by a business, where costs and revenues can be directly attributed and tracked.

Time Tickets

The form on which the amount of time spent by each employee and the labor cost incurred for each individual job, or for factory overhead, are recorded.

Product Cost

Product cost is the total expense incurred to produce and deliver a good or service, including direct materials, direct labor, and manufacturing overhead.