Logical Incrementalism Is a Useful Decision-Making Mode When the Environment

question 14

True/False

Logical incrementalism is a useful decision-making mode when the environment is rapidly changing and when it is important to build consensus to a specific strategy.

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Definitions:

Direct Labor

The cost of wages for workers directly involved in the manufacturing or production of goods.

Allocation Base

A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.

Activity Measure

An activity measure is a metric used in activity-based costing to gauge the amount of activity consumed by a cost object, assisting in the more accurate allotment of overhead costs.