Managerial Accounting Has Changed in Recent Years Because Of

question 63

Multiple Choice

Managerial accounting has changed in recent years because of:

• A)a growing service economy in the United States.
• B)the growing popularity of cross-functional teams.
• C)an increase in global competition.
• D)time-based competition.
• E)All of these factors.

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Definitions:

Manufacturing Overhead Costs

Englobes the indirect costs related to manufacturing that are not directly tied to the production of specific units, such as utilities and rent for production facilities.

Factory Burden Costs

Costs associated with manufacturing operations that are not directly tied to a specific product, such as maintenance, utilities, and depreciation of factory equipment.

Non-manufacturing Costs

Expenses not directly related to the production of goods, such as administrative, selling, and marketing costs.

Theoretical Capacity

The highest possible level of production an organization can achieve under ideal circumstances, with no downtime for maintenance or repairs.