Based on the Fact That the Management Science Approach Uses

question 16

Essay

Based on the fact that the management science approach uses quantitative data, which are not rich, discuss limitations of the approach for organizational decision making.

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Definitions:

Allocation Base

A criterion or standard used to distribute costs among different cost objects, such as departments or products.

Overhead Costs

Indirect costs incurred in the business process, such as rent, utilities, and administrative expenses, not directly attributable to specific products or services.

Complex

Consisting of many different and connected parts; not simple.

Plantwide Overhead Rate

A single, uniform overhead absorption rate used throughout a manufacturing plant or facility.