Which of the Following Decisions Is Most Likely to Be

question 78

Multiple Choice

Which of the following decisions is most likely to be made by top managers?

• A) Decisions on how much of a product to make and how to make it
• B) Decisions regarding from whom to purchase inputs and what inventory of inputs to hold
• C) Decisions on how much employees should be paid, how they should be trained, and what benefits they should be given
• D) Decisions on how to allocate scarce financial resources among competing projects
• E) Decisions about the new product design

---

Definitions:

Activity Cost Pools

Groups of costs categorized based on the activities that incur the cost, used in activity-based costing.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs to each unit of production, representing the number of hours a machine is operated.

Batches

Quantities of goods or materials processed or produced at one time during manufacturing.

Overhead Cost

Indirect expenses related to manufacturing or production, which are not directly tied to a specific product, such as rent, utilities, and salaries of managers.