You Sell Machine Tools

question 72

Multiple Choice

You sell machine tools. You have just called on "Duck" Williams the production manager at the Copper Hill Tool and Die Manufacturing Company. You know you've called on the wrong person when Duck says:

• A) "Our Dalcon 4000 machine is on its last legs."
• B) "Our sales for this year are expected to increase by 25 percent."
• C) "Maria Mintz, the director of the purchasing department, makes all the decisions about major equipment purchases."
• D) "My department's equipment budget is larger than last year's."
• E) Any of the above

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Definitions:

Controlling Account

A general ledger account that summarizes the total balances of several subsidiary accounts, facilitating the organization and tracking of financial information.

Direct Labor Costs

The total cost of labor that is directly involved in the production of goods or services, which can be easily traced to the product.

Factory Overhead

Indirect costs associated with manufacturing, such as utilities, maintenance, and management salaries, which cannot be directly traced to specific units produced.

Production Orders

Instructions or commands to start the manufacturing process of a particular item, including details like quantity and specifications.