All of the Following Describe the Conflict Between Divisions EXCEPT

question 50

Multiple Choice

All of the following describe the conflict between divisions EXCEPT

• A)some activities across divisions benefit from coordination
• B)managers of profit centers care too little about the effects of their decisions on other divisions
• C)managers are rewarded only for how well their own division is run
• D)A divisional manager does not have authority to run her division efficiently

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Definitions:

Standard Costs

Preset costs established for the manufacture of a product, including direct materials, direct labor, and overhead expenses, against which actual costs are compared.

Fixed Overhead Cost Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.

Variance Analysis

The process of examining differences between actual and budgeted/expected financial performance and investigating the causes.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level, providing a more useful tool for performance evaluation.