Barnard Maintains That Authority Will Be Accepted Under All the Following

question 63

Multiple Choice

Barnard maintains that authority will be accepted under all the following conditions, EXCEPT when ________.

• A) the individual believes the order is consistent with the purpose of the organization
• B) the individual can understand the order being communicated
• C) the individual sees the order as compatible with his or her personal interests
• D) the individual is mentally and physically able to comply with the order
• E) the individual considers informal communication channels to be more credible than formal ones

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Definitions:

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to products based on the number of hours machines are used in the production process.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on a predetermined formula before the accounting period begins.