In Response to a Query About Sharon,her Manager Replied with an Email

question 25

Multiple Choice

In response to a query about Sharon,her manager replied with an email stating,"Sharon is a good employee." He meant this as a positive endorsement of Sharon,but the inquirer decoded "good" to mean that Sharon was just a mediocre employee.In this instance

• A) quid pro quo has occurred.
• B) the manager used the wrong sensory channel to convey the message.
• C) cognitive structuring has occurred.
• D) bypassing has occurred.

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Definitions:

Underapplied Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to an underestimation of product costs.

Practical Capacity

The maximum production level that a company can sustain with the current resources and conditions in a realistic manner.

Overapplied Overhead

Overapplied overhead occurs when the amount of overhead allocated to products or services is greater than the actual overhead incurred.

Allocation of Budgeted Costs

This refers to the process of distributing the total budgeted costs across different departments, projects, or activities based on predetermined criteria.