Mark and Joe Work in the Client Services Department of an Advertising

question 63

Multiple Choice

Mark and Joe work in the client services department of an advertising agency,and they have been assigned the account of a major client.However,when the client sends an email with an urgent request,neither of them respond.This is most likely due to ________.

• A)overlapping responsibilities
• B)responsibility gaps
• C)poor line authority
• D)excessive delegation
• E)high centralization

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Definitions:

Budgeted Overhead

Budgeted overhead is the estimated total cost of all overhead expenses planned for a specific period in the future.

Controllable Overhead Variance

The difference between the actual overhead costs incurred that are directly manageable by a manager and the budgeted or standard overhead costs.

Direct Labor Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor.