A Business Plan That Is Updated Every Year, Depending on the Changes

question 34

True/False

A business plan that is updated every year, depending on the changes in the organization and in the external environment that have taken place in the previous year, is known as a rolling plan.

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Definitions:

Activity Cost Pool

A grouping of all the costs associated with a particular activity, used in activity-based costing.

Cost Allocation Base

A method or factor used to assign costs in an equitable manner to various cost objects like departments, products, or projects.

Departmental Overhead Rate

A rate used to allocate overhead costs to individual departments based on relevant criteria, such as direct labor hours or machine hours.

Departmental Overhead Rate

A calculation used to allocate indirect costs to specific departments, based on a relevant activity base, enhancing cost accuracy per department.