Which of the Following Would Be Considered If a Company

question 57

Multiple Choice

Which of the following would be considered if a company desires to establish a series of practical manufacturing standards?

• A)The productivity loss associated with a short-term worker slowdown.
• B)Normal defect rates in an assembly process only.
• C)Highly unusual spoilage rates with direct materials.
• D)Quantity discounts associated with purchases of direct materials only.
• E)Normal defect rates in an assembly process and quantity discounts associated with purchases of direct materials.

Recognize the importance and methods of allocating fixed and variable costs to operating departments for performance evaluation.

Calculate and analyze the impact of actual vs. budgeted costs and activities on departmental charges.

Differentiate between various cost allocation bases and understand their application in cost accounting.

Evaluate the role of service departments within a company and how their costs are allocated to operating departments.

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Definitions:

Delivery Gap

The discrepancy between a customer's expectations of a service and the actual service delivered, often leading to dissatisfaction.

Technology

The application of scientific knowledge for practical purposes, especially in industry and daily life.

Empowering Employees

The practice of giving employees autonomy, authority, and encouragement to make decisions and take actions that positively impact the company.

Empowerment

The process of enabling individuals or groups to take control of their circumstances and achieve their own goals, often leading to increased autonomy and self-determination.