To Use a Programmed Decision in Dealing with Occasional Company

question 62

Multiple Choice

To use a programmed decision in dealing with occasional company overspending, a manager would

• A)have a brainstorming session to gather possible solutions to the overspending.
• B)listen to the opinions of various employees about why the company overspends.
• C)conduct an analysis to determine the possible causes for overspending.
• D)devise procedures to take depending on the amount of overspending in a month.

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Definitions:

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced.

Absorption Costing

A financial recording technique that incorporates every manufacturing expense, such as direct materials, direct labor, and all overhead costs (variable and fixed), into the product's cost.

Net Operating Income

The profit a company generates from its core business operations, excluding deductions of interest and tax.

Absorption Costing

An approach in accounting that integrates all costs associated with manufacturing, including direct materials, direct labor, and both variable and fixed overhead, into the product’s price.