In Centralized Systems

question 6

Multiple Choice

In centralized systems:

• A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
• B)each foreign unit designs its own unique solutions and systems.
• C)systems development and operations occur in an integrated and coordinated fashion across all units.
• D)systems development and operations occur totally at the domestic home base.
• E)systems development is a combined effort of domestic and international units.

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Definitions:

Cost Pools

A method used in cost accounting to group collected costs, which simplifies allocating costs to different products, services, or departments.

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.

Product-level Costs

Costs that can be directly attributed to a specific product, including materials and direct labor costs.