John Stevens Has Been Assigned to a Team Charged with the Development

question 83

Multiple Choice

John Stevens has been assigned to a team charged with the development of a clear company mission, supporting objectives, a sound business portfolio, and coordinated functional strategies. John is involved in:

• A) annual and long-term planning.
• B) corporate financial planning.
• C) strategic planning.
• D) new product development.
• E) management planning.

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for allocating labor costs to products.

Activity-Based Costing

A method in cost accounting that assigns costs to products and services based on the activities involved in their production or delivery.

Activity Rates

Rates used in activity-based costing to assign overhead costs to products or services, based on the activities that drive those costs.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate cost information.