Matthew Is a New Divisional Manager

question 55

Multiple Choice

Matthew is a new divisional manager. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
-In observing the departments in his division, Matthew notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly-sized spans of control. Which of the following statements is most likely true regarding the high-performing managers?

• A) These managers are paid higher salaries than the low-performing managers.
• B) These managers discourage employee autonomy, which produces more uniform departmental results.
• C) The employees within their departments tend to compete to reach productivity goals, which boosts performance.
• D) The employees within their departments have poor communication with each other.
• E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

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Definitions:

Accrued Expense

Costs that have been incurred for goods or services but have not yet been paid for or recorded in the financial statements.

Accrued Revenues

Revenues that have been earned (through the delivery of goods or services) but not yet received in cash or recorded.

Goods

Physical items that are produced or purchased for sale by a business.