Each of the Following Is an Element of the Operational

question 38

Multiple Choice

Each of the following is an element of the operational issues to be considered in the decision making model except for the:

• A) Culture of the organization
• B) Method of moral reasoning
• C) Internal controls
• D) Corporate governance system

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Definitions:

Direct Labour Hours

The aggregate hours employees devoted to the process of production have logged.

Variable Overhead

Costs that vary with the level of output, such as utilities and labor, as opposed to fixed overheads.

Actual Direct Labour Hours

The actual time spent by labor directly involved in the production of goods or service delivery.

Direct Labour Rate Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production achieved.