The Downside of Using an Appeals System Is That It

question 58

Multiple Choice

The downside of using an appeals system is that it tends to undermine the authority of the supervisor and may encourage ____ error.

• A) leniency
• B) recency
• C) severity
• D) central tendency

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Definitions:

Variable Overhead Rate

Variable overhead rate is the ratio of variable overhead costs incurred for every unit of activity or a specific measure of activity, such as labor hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods and services.

Variable Overhead Rate

A rate that changes with the level of activity or production volume, applied to variable overhead costs.

Lubricants Variance

A difference between the expected and actual cost of lubricants used in a manufacturing or operational process.