Figure K.4 A Company of Four Departments Has the Following Closeness Factors

question 12

Multiple Choice

Figure K.4
A company of four departments has the following closeness factors and current locations of all departments. Assume rectilinear distance.

-Use the information in Figure K.4. What is the overall weighted-distance score for the arrangement?

• A) 52
• B) 48
• C) 63
• D) 58

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Definitions:

Personnel Expenses

The costs associated with employing staff, including wages, salaries, benefits, and taxes.

Direct Labor

The wages of employees directly involved in the production of goods or services, considered a variable cost.

Activity Level

Activity level refers to the volume of production or operations in a business. It is a determinant in both variable costing and activity-based costing, impacting how costs are allocated and managed.

Spending Variance

The difference between the budgeted amount of expenses and the actual amount spent.