A- Z Planning (Scenario)

question 119

Multiple Choice

A- Z Planning (Scenario)
Organizations ABC and XYZ are both in the same industry and compete for the same set of customers in the marketplace. At ABC, the plans are made at the top level of management each year and then are formulated for and announced to each of the mid- level and first- level managers. At XYZ, the plans are made at the top, and then those managers meet with their subordinates at the next level and mutually agreed- to goals are established with them. The mid- level managers then meet with their first- level managers and mutually agreed- to goals are established with them. Finally, the first- level managers meet with each of their employees and mutually agreed- to goals are established with them.
-Assuming XYZ's hierarchy of goals is clearly defined, the result is ___________.

• A) management by objectives
• B) formal planning department
• C) unity of command
• D) a means- end chain

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Definitions:

Labour Efficiency Variance

A metric that assesses the difference between the expected amount of labor time to produce a given level of output and the actual labor time used.

Labour Rate Variance

The difference between the actual wage rate paid to workers and the expected (or standard) wage rate, multiplied by the actual hours worked.

Direct Labour Costs

Costs that can be directly attributed to the production of goods or services, such as wages for workers manufacturing a product.

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on a predetermined standard.