A Privately Owned, Small Company with a Technology or Production

question 47

Multiple Choice

A privately owned, small company with a technology or production orientation will usually have

• A) autonomous decision making.
• B) joint decision making.
• C) multiparty decision making.
• D) decentralized decision making.

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Definitions:

Fixed Manufacturing Overhead

The costs that do not change with the level of production, including costs such as rent, insurance, and salaries for management.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of its production cost.

Direct Labor

The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.

Variable Costs

Costs that change in proportion to the level of production or sales activity.