Organizational Structure Has Six Key Elements

question 22

Multiple Choice

Organizational structure has six key elements. Which of the following is not one of these elements?

• A) centralization
• B) departmentalization
• C) work specialization
• D) formalization
• E) location of authority

Learn how to record transactions in a standard costing system accurately.

Gain the ability to compute variances between actual costs and standard costs, including direct materials, direct labor, and fixed overhead variances.

Understand how to apply fixed overhead to Work in Process (WIP) inventory using the predetermined overhead rate.

Know how to prepare and analyze an income statement for manufacturing companies using standard costing.

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Definitions:

Ending Total Assets

The total value of a company's assets (such as cash, inventory, property, and investments) at the end of an accounting period.

Profit Margin

A financial metric expressed as a percentage that measures the amount of net income earned with each dollar of sales by comparing net income and net sales.

Net Income

The net income that a company earns, calculated by deducting all expenses and taxes from the total revenue.

Net Sales

The total revenue from sales transactions after deducting returns, allowances for damaged or missing goods, and discounts.