What Are Three Consequences Associated with the Decentralized Control Method

question 81

Essay

What are three consequences associated with the decentralized control method?

---

Definitions:

Work in Process

Goods in various stages of production within a factory, not yet completed but also not raw materials.

Fixed Manufacturing Overhead

The costs associated with production that do not change with the level of output, such as depreciation of equipment and salary of the factory manager.

Direct Labor

The labor cost directly associated with the production of goods, including wages of workers who are directly involved in creating the product.

Cash Account

An account that records cash transactions both received and expended, reflecting the cash position of a business at any given time.