Which Is NOT a Characteristic of Policies

question 36

Multiple Choice

Which is NOT a characteristic of policies?

• A) let both employees and managers know what is expected of them
• B) provide a basis for management control
• C) allow coordination across organizational units
• D) reduce the amount of time managers spend making decisions
• E) represent the basis for allocating resources

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Definitions:

Product Costs

The total costs incurred to create a product, including direct labor, materials, and overhead.

Manufacturing Activities

The set of processes involved in the production of goods, ranging from raw materials handling to the final assembly of products.

Departmental Overhead Rate

A charge rate specific to each department of a company, calculated to allocate indirect costs to products more accurately.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total direct labor hours or machine hours, applied company-wide.