Which of the Following Statements Does NOT Accurately Describe the Impact

question 74

Multiple Choice

Which of the following statements does NOT accurately describe the impact of resource utilisation and goal attainment on organisational performance?

• A) When resource utilisation is good and goal attainment is low, organisational performance is efficient but not effective.
• B) When resource utilisation is good and goal attainment is high, organisational performance is both effective and efficient.
• C) When resource utilisation is poor and goal attainment is high, organisational performance is effective but not efficient.
• D) When resource utilisation is poor and goal attainment is low, organisational performance is neither effective nor efficient.
• E) Organisational performance is unaffected by poor versus good resource utilisation and low versus high goal attainment.

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Definitions:

Overhead Applied

The portion of manufacturing overhead costs assigned to each unit of production, based on a predetermined rate.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the activities they require.

Traditional Costing Method

A costing system that applies overhead costs to products based on a predetermined overhead rate, without regard to the actual activities that lead to those costs.

Unit Product Cost

The total cost associated with producing a single unit of output, including both variable and fixed costs.