At the First Level of a Management Support System Is

question 49

Multiple Choice

At the first level of a management support system is a(n) _____ system, which uses summary data collected by the transaction processing system to provide managers with decision-making information.

• A)executive information
• B)operating
• C)information reporting
• D)expert
• E)office automation

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Definitions:

Variable Overhead Rate

The portion of overhead costs that varies directly with production volume, calculated as variable overhead costs divided by a certain measure of activity (e.g., labor hours or machine hours).

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as salaries, rent, and insurance.

Master Budget

A comprehensive financial plan made up of several individual budgets that represent the company's operations and financial goals for a specific period.

Product

An item or service created through a process of manufacturing or production, intended for sale or use by consumers.