Which of the Following Statements Is True of Standardization

question 34

Multiple Choice

Which of the following statements is true of standardization?

• A) It can ensure that activities within the firm run smoothly and yield predictable outcomes.
• B) It is defined as the degree to which the firm utilizes rules, procedures, and written documentation to structure the behavior of employees.
• C) It involves the use of organic structures, instead of mechanistic ones.
• D) It encourages the creativity and experimentation that leads to innovative ideas.

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Definitions:

Factory Overhead

All manufacturing costs that are not directly associated with the production of goods, including indirect labor and materials.

Cost Of Production Report

A document that details the total cost and production information for a specific period, used primarily in process costing settings.

Equivalent Units

A concept in costing used to convert partially completed goods into the equivalent of a number of fully completed units.

Process Cost Accounting

Process cost accounting is a method used to allocate production costs to units of output in continuous or repetitive manufacturing processes.