The Greater the Number of Decisions Made at the Higher

question 54

True/False

The greater the number of decisions made at the higher levels of the organization,the more the company is decentralized.

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Definitions:

Overhead Costs

Expenses related to the operation of a business that cannot be directly tied to a specific product or service.

Plantwide Overhead Rate

Plantwide overhead rate is a single rate used to allocate all of a plant’s manufacturing overhead costs to its production activities, regardless of the department in which they occur.

Direct Labor Hour

A measure of the labor directly involved in manufacturing a product or delivering a service, often used in costing and budgeting.

Activity-based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.