The Organizational Strategy That Specifies the Activities of Managers at the Departmental

question 52

Multiple Choice

The organizational strategy that specifies the activities of managers at the departmental level of the organization is a _____________-level strategy.

• A) functional
• B) business
• C) corporate
• D) divisional
• E) top

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Definitions:

Unit-Level Activity

Activities that vary directly with the volume of production units, such as processing, assembly, or packaging activities in manufacturing.

Activity-Based Costing

A costing methodology that assigns manufacturing costs to products based on the activities that go into producing them.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing that cannot be directly traced to specific products, such as factory rent, utilities, and maintenance.

Overapplied Overhead

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period.