Comet & Sons is a publishing company with 150 employees. Sanders Inc. is a consulting company with 12 employees. Prenders Co. produces cupcakes with a staff of 245. Despite their differences, these are all organizations. What are the common denominators that these three companies share?
What will be an ideal response?
From a design perspective, an organization is a system of consciously coordinated activities or forces of two or more persons. Four common denominators of all organizations are coordination of effort, aligned goals, division of labor, and a hierarchy of authority. Coordination of effort is achieved through formulation and enforcement of policies, rules, and regulations. Aligned goals start from the development of a companywide strategic plan. These strategic goals are then cascaded down through the organization so the employees are aligned in their pursuit of common goals. Division of labor occurs when the common goals are pursued by individuals performing separate but related tasks. Hierarchy of authority, also called the chain of command, is a control mechanism dedicated to making sure the right people do the right things at the right time.
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Financialization refers to the tendency for:
A. Businesses to focus excessively on managing their businesses using financial maneuvers rather than capital investments. B. Businesses failing due to excessive debt. C. Unions to misuse members' due money for their own purposes. D. Unions to become too heavily focused on revenue generation at the expense of union representation.
Describe some impacts of noise in the workplace
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Pierce Corporation, a U.S. business, is a direct competitor of Zeiss Company, a German firm. The two firms not only compete for customers, but also for investment capital. In Year 1, each company spent about $35,000 U.S. dollars or the equivalent on research and development. U.S. GAAP requires the entire amount to be expensed, while Germany requires its businesses to record R&D expenditures as an asset and then to expense it over its useful life. Assuming the treatment of R&D is the only difference between the two firms, which of the following is correct?
A. Pierce will have a higher debt-to-assets ratio than Zeiss in Year 1. B. This difference in accounting principles does not affect the total amount of assets reported by the two companies. C. Zeiss will have a lower net income for Year 1. D. Pierce will have higher total assets than Zeiss in Year 1.
A favorable direct materials cost variance occurs when the actual direct materials cost incurred is less than the standard direct materials cost
Indicate whether the statement is true or false