What Is Downward Communication, and What Are Five Topics Generally

question 121

Essay

What is downward communication, and what are five topics generally included with downward communication?

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Definitions:

Sales Dollars

refers to the total revenue generated from selling goods or services before any deductions like returns or discounts are made.

Period Cost

Expenses that are not directly tied to production activities and are charged to the period in which they occur.

Absorption Costing

A financial approach that encompasses all production expenses - such as direct materials, direct labor, along with variable and fixed overheads - within the price of a product.

Variable Costing

An accounting method that includes only variable costs—costs that change with production volume—in product costing and decision making.