The Activity-Based Resource Usage Model Improves Managerial Control and Decision

question 34

Multiple Choice

The activity-based resource usage model improves managerial control and decision making such as

• A)the best way to use excess activity capacity in the system.
• B)maximization of individual unit performance.
• C)increasing the allocation of costs.
• D)focusing on managing costs rather than activities.

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Definitions:

Direct Labor

The wages and benefits of employees who are directly involved in the production of goods or services.

Fixed Overhead

Regular, ongoing expenses in dictated business operations, such as rent and salaries, that do not vary with production levels.

Flexible Manufacturing Overhead Budget

A budget that varies with the level of operational activity, estimating costs like utilities and maintenance that are not directly tied to production volume.

Mixing Department

Mixing Department is a specific section or unit within a manufacturing process where different materials are combined to produce a final or intermediary product.