The Built-In Mechanisms That an Organization Has to Produce Stability

question 134

Multiple Choice

The built-in mechanisms that an organization has to produce stability are referred to as

• A)structural inertia.
• B)threat to expertise.
• C)habit.
• D)selective information processing.
• E)economic factors.

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Definitions:

Absorption Costing

This accounting practice involves adding all costs associated with production, including direct materials, labor, and both kinds of overhead expenses (variable and fixed), into the cost calculation of a product.

Unit Product Cost

The total cost (fixed and variable) associated with making one unit of product.

Fixed Manufacturing Overhead

Costs associated with the production process that do not vary with the level of output, such as salaries of managers or rent of the factory building.

Inventories

Materials, work in progress (WIP), and finished goods held by a company to enable production and meet customer demand.