Describe the Three Categories That Comprise Anthony's Taxonomy of Management

question 18

Essay

Describe the three categories that comprise Anthony's taxonomy of management.

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Definitions:

Cost Object(s)

Any item, activity, or project for which separate measurement of costs is desired, facilitating targeted expense management and financial efficiency.

Indirect Labor

This term describes labor costs not directly associated with the production of goods or services, such as maintenance and supervisory personnel.

Factory Utilities

Expenses associated with the utilities consumed in a factory, such as electricity, gas, and water, used during the manufacturing process.

Overhead Allocation Base

A measure or criterion used to distribute overhead costs among various products, services, or departments.