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Eleanor Gave Her Production Team a Specific Objective of Increasing

question 19

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Eleanor gave her production team a specific objective of increasing production by 3 percent over the previous month and keeping rejects below the standard of 0.05 percent.Eleanor noticed the team having far more drive and energy,and overall more alertness and commitment to their tasks.Which benefit of planning is Eleanor seeing in her production team?


Definitions:

Sales Level

The total volume or quantity of sales achieved by a business within a specific period.

Income Change

Income change refers to any variation, either an increase or decrease, in the amount of revenue or profit that an entity receives over a period.

Variable Costing

An approach to costing that accounts for only variable production expenses, including direct materials, direct labor, and variable manufacturing overhead, in the calculation of product costs.

Absorption Costing

A costing approach that consolidates every expense related to manufacturing - direct materials, direct labor, and both variable and fixed overheads - into the product’s price.

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