When a Business Doesn't Have Control of All the Environmental

question 41

Multiple Choice

When a business doesn't have control of all the environmental forces,it is called __________ design.For example,Acme Medical relies on predictions and contingencies to cope with unexpected input.Last year,an influenza epidemic affected suppliers,personnel,and even customers,causing lost production and lost profit.

• A) traditional
• B) open
• C) horizontal
• D) functional
• E) divisional

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Direct Labor-Hours

The number of labor hours spent by employees directly working on a product or service.

Machine-Hours

A measure of the amount of time a machine is operated, used for costing purposes, production scheduling, and capacity planning in manufacturing.

Forming Department

A division or section within a manufacturing plant where a specific, dedicated portion of the production process occurs, focusing on shaping or forming materials into parts or products.