Classy Clay Has Extremely Creative Employees Who, in the Opinion

question 148

Multiple Choice

Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n) :

• A) internal weakness.
• B) external opportunity.
• C) external strength.
• D) internal strength.
• E) neutral factor.

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Definitions:

Overhead Allocation

The process of distributing indirect costs to cost objects such as products, services, or business units.

Variable Overhead

Costs that vary indirectly with production volume, such as utilities or indirect materials.

Activity Measure

A metric used to quantify the level of activity, productivity, or performance in a specific area, often used in managerial accounting to allocate costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.