Riley Is a Manager at Tinker Tools

question 81

Multiple Choice

Riley is a manager at Tinker Tools. She is expected to make rational decisions that are economically feasible and in the organization's best economic interests. Her decisions should be based on which of the following decision-making models?

• A) Administrative
• B) Political
• C) Scientific management
• D) Classical
• E) Humanistic

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Definitions:

Variable Manufacturing Overhead

Variable manufacturing overhead includes costs that fluctuate with production volume, such as utilities and materials used in the production process that are not directly tied to specific units produced.

Fixed Manufacturing Overhead

The consistent, non-variable costs associated with manufacturing, regardless of the production volume.

Direct Materials

Raw materials that are directly used in the production of goods and can be easily traced to the product.

Direct Labour

The workforce directly involved in manufacturing goods or providing services, where their labor can be directly tied to end products.