An Advantage of the Bottom-Up Planning Approach Is

question 116

Multiple Choice

An advantage of the bottom-up planning approach is:

• A)identifying pressing organizational problems
• B)broader perspective
• C)improved integration
• D)better understanding

---

Definitions:

Direct Labor-hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process, used as a measure for allocating labor costs to products.

Predetermined Overhead Rate

The rate estimated at the beginning of a period to allocate overhead to products or job orders, calculated based on expected overhead costs and an allocation base.

Machine-hours

A measure of production activity that quantifies the total hours that machinery is in operation during a given period.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including materials, labor, and expenses not directly tied to the production of goods.