Assume That Managers Are Rewarded for Reducing Product Costs as Calculated

question 142

Multiple Choice

Assume that managers are rewarded for reducing product costs as calculated by the accounting system.In keeping with the theme that "you get what you measure," if a company switches its overhead application basis from direct labor hours to machine hours, what would you expect to happen?

• A)Machine hours will increase
• B)Machine hours will decrease
• C)Total costs will increase
• D)Output will reduce

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Definitions:

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The process by which microorganisms such as bacteria and fungi break down substances, often pollutants, reducing them to simpler, less harmful forms.

Oil Spills

The release of liquid petroleum hydrocarbon into the environment, particularly marine areas, causing pollution and harm to wildlife and ecosystems.

Groundwater's Temperature

The thermal condition of water stored underground in aquifers, which can vary depending on depth, geographical location, and season.

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Overgrowths of algae in water that can produce dangerous toxins, negatively affecting aquatic life, pets, and people, and harming the environment.