Which Is NOT a Major Factor That Commonly Prohibits Effective

question 23

Multiple Choice

Which is NOT a major factor that commonly prohibits effective resource allocation?

• A) Underprotection of resources
• B) Organizational politics
• C) Having vague strategy targets
• D) A reluctance to take risks
• E) A lack of sufficient knowledge

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are a significant portion of the production cost.

Period Costs

Costs that are expensed in the period in which they are incurred, rather than being capitalized or included in the cost of goods sold, such as selling, general, and administrative expenses.

Direct Materials

Raw materials that can be directly associated with the production of goods, clearly identifiable and allocable to specific products or jobs.

Factory Overhead

The total of all indirect costs associated with manufacturing, including indirect labor, materials, and expenses not directly tied to the production of goods.