Of the Four Organizational Levels, the Corporate Level Is Likely

question 141

Multiple Choice

Of the four organizational levels, the corporate level is likely to make which of the following decisions?

• A) entering a new market
• B) resource allocation for each product
• C) strategic plan for individual business units
• D) choosing specific suppliers for each business unit
• E) marketing plan for each product

---

Definitions:

Labour Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost.

Standard Hours Allowed

The amount of work hours allocated to complete a specific task or project, often used in performance measurement.

Denominator Level

In cost accounting, it refers to the level of activity used to allocate fixed costs to units of production.

Standard Costing

Standard costing is an accounting method that applies estimated costs to product costs for budgeting purposes and performance evaluation, facilitating variance analysis.