What Does the Evidence Suggest About Organisations That Plan Compared

question 74

Multiple Choice

What does the evidence suggest about organisations that plan compared to organisations that do not plan?

• A)Planning organisations always outperform non-planning organisations.
• B)Non-planning organisations always outperform planning organisations.
• C)Planning organisations generally outperform non-planning organisations.
• D)Non-planning organisations generally outperform planning organisations.
• E)They generally perform at about the same level.

---

Definitions:

Period Costs

Expenses that are not directly associated with manufacturing and are therefore recorded as expenses in the period in which they are incurred.

Factory Utilities

The costs associated with utilities consumed in the manufacturing process, such as electricity, water, and gas necessary for factory operations.

Product Cost

The total expenses incurred to produce and deliver a product, including direct materials, direct labor, and overhead.

Period Cost

Costs not directly associated with production, charged as expenses during the period they arise.