Darla Is an Experienced Plant Manager

question 45

Multiple Choice

Darla is an experienced plant manager. She has been assigned to help a struggling plant meet its target goals. On her first day she asks for the organizational chart and the last month's productivity reports. What would Darla do with those two documents?

• A) She might move managers into other areas to test their knowledge.
• B) She might order more materials and hire additional staff.
• C) She might reorganize the management team and rethink the work processes.
• D) She might lay-off line workers to save money and add managers to the line.
• E) She might suggest to upper management that the plant needs to close.

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Definitions:

Direct Method

A cost allocation method that assigns service department costs directly to production departments without recognizing services provided between service departments.

Sales

Revenue generated from goods or services sold by a company.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without considering services provided between service departments.

Accounts Receivable

represents the money owed to a company by its customers for goods or services delivered but not yet paid for.