Challenges to Developing a Systems Thinking Viewpoint in an Organization

question 51

Multiple Choice

Challenges to developing a systems thinking viewpoint in an organization include:

• A) Competing goals and incentives
• B) Segmented organizational structure
• C) Lack of information sharing
• D) 'Siloed' decision-making
• E) All of the above

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Definitions:

Overapplied Overhead

A condition where the allocated overhead costs exceed the actual overhead costs incurred during a period.

Manufacturing Overhead

All indirect costs associated with the production process, including costs related to running the manufacturing facilities that are not directly traceable to specific units of product.

Underapplied

Refers to the situation where the actual manufacturing overhead costs are greater than the overhead costs applied to products based on the predetermined overhead rate.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and allocated overhead.