A Company Using _____ Achieves Control by Comparing Actual Performance

question 21

Multiple Choice

A company using _____ achieves control by comparing actual performance against targets and intervening selectively to take corrective action.

• A)personal control
• B)output control
• C)bureaucratic control
• D)cultural control

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Definitions:

Plantwide Rate

A single overhead absorption rate used throughout an entire plant or facility, applying the same rate to all cost objects regardless of the department in which they were created.

Overhead Costs

Expenses not directly tied to production but necessary for running the business, such as rent, utilities, and insurance.

Manufacturing Activities

Operations involved in the production of goods, including assembling raw materials, machining, and finishing products.

Manufacturing Overhead Costs

Indirect costs related to manufacturing that are not directly tied to specific products, such as maintenance, utilities, and management salaries.