Most Organizations Define Areas of Control in Terms of the Four

question 27

Short Answer

Most organizations define areas of control in terms of the four basic types of resources they use: physical,human,____________________ and financial.

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true.

Fixed Manufacturing Cost

Costs that do not vary with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Manufacturing Overhead Cost

The total of all costs associated with manufacturing beyond direct materials and direct labor, including indirect expenses such as maintenance and factory utilities.

Direct Manufacturing Cost

Costs that are directly attributable to the manufacturing process, including direct labor and direct materials cost.