Which of the Following Is NOT Descriptive of the Purpose

question 40

Multiple Choice

Which of the following is NOT descriptive of the purpose of MBO?

• A) MBO provides an opportunity for the corporation to connect the objectives of people at each level to those at the next higher level.
• B) MBO operates independently and requires very little supervision or administration.
• C) The goals at each level ideally contribute directly towards overall organizational objectives.
• D) MBO provides a potential method of integrating the physical, financial and human resource plans of an organization as it relates to the goals of the individual.
• E) MBO ties the corporate, business, and functional objectives together along with the strategies used to achieve them.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost of labor at the standard rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost accounting.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on the predetermined rate.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the direct costs of production.