Dale, a Manager, Is Assessing Possible Alternative Solutions of a Problem

question 111

Multiple Choice

Dale, a manager, is assessing possible alternative solutions of a problem. Dale attempts to determine whether a possible alternative will threaten other company projects. Which criterion of decision making is Dale focusing on?

• A) Economic feasibility
• B) Practicality
• C) Legality
• D) Ethicalness
• E) Functionality

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Definitions:

Manufacturing Overhead Budget

An estimation of the costs that are not directly attributable to products but are necessary for the manufacturing process, including utilities, depreciation, and maintenance of equipment.

Non-Cash Charges

Expenses reported on the income statement that do not require an actual cash outflow, such as depreciation and amortization.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Cash Disbursements

The outflow of cash for expenses, such as payments to creditors, operational costs, and investment activities.