A Well-Run Company That Has Well-Thought-Out Plans, Motivated and Productive

question 122

Multiple Choice

A well-run company that has well-thought-out plans, motivated and productive workers, and an efficient organizational structure ________.

• A)always attains its goals
• B)may not always attain its goals
• C)rarely attains its goals
• D)has no reason to monitor its performance

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Definitions:

Idle Capacity

The portion of a company's resources or assets that is underused or not producing income, often leading to inefficiencies and increased costs.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiding in more accurate product costing.

Cost Per Unit

The total expense incurred to produce, store, and sell one unit of a product, calculated by dividing total costs by the number of units produced.

Activity Cost Pools

A category in cost accounting where costs are allocated based on specific activities, allowing for more accurate determination of the sources of overhead.