Which of the Following Is NOT an Accurate Statement Regarding

question 72

Multiple Choice

Which of the following is NOT an accurate statement regarding the supervisor's role in controlling through budgets?

• A) The budget that most concerns supervisors is usually the departmental expense budget.
• B) Supervisors must refer to their budgets to monitor their expenditures during the operation period.
• C) If a supervisor notes that actual expenditures for a specific item greatly exceed the budget, the supervisor should wait until the next budget cycle before taking any action.
• D) Supervisors should demonstrate the actual need for each amount they request and document their requests with historical data whenever possible.

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Definitions:

Work in Process

Inventory that includes all materials, labor, and overhead costs for products that are in the process of being manufactured but are not yet completed.

Finished Goods

The final products that are completed and ready for sale to customers.

Job-Order Costing

An accounting methodology used to assign manufacturing costs to individual units or batches of production, based on the jobs performed.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products.