Creating Slack Resources Means That

question 28

Multiple Choice

Creating slack resources means that:

• A) a manager limits the availability of resources to some units.
• B) nonperforming employees are assigned to easier tasks.
• C) more resources are made available to each unit in case they need them in a pinch.
• D) each unit is differentiated by functional specialty.
• E) time,money,and other resources are tightly budgeted.

Analyze the marginal costs associated with increasing capacity or service.

Distinguish between fixed, variable, and total costs in business operations.

Evaluate decision-making processes in operational and financial contexts.

Understand the concept of average cost and how it is affected by changes in the quantity of units produced and workers hired.

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Definitions:

Factory Overhead

Refers to indirect manufacturing costs, including expenses related to operating the factory environment, such as rent, insurance, and salaries for administrative personnel.

Machine Hours

A measure of production time or usage, indicating the total hours that machinery is operated in the manufacturing process.

Underapplied Amount

The shortfall when the allocated budgeted or standard cost amount is less than the actual expense.

Raw Materials

The basic, unprocessed inputs required for the production process, such as metals, wood, and agricultural products.