__________ Refers to the Fact That Organizations Are Composed of People

question 53

Multiple Choice

__________ refers to the fact that organizations are composed of people who interact with one another and with people in other organizations.

• A) Open entity
• B) Working entity
• C) Social entity
• D) Closed entity

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services, used for cost allocation and operational planning.

Standard

A level of quality or achievement, especially one that is used as a point of reference.

Budget

An estimation of revenue and expenses over a specified future period of time, used by organizations for planning and controlling their financial resources.

Standard Cost

A predetermined cost of manufacturing, selling, or administering each product or service, used as a benchmark to measure performance.