The Use of Computers for Email and Document Storage Has

question 50

True/False

The use of computers for email and document storage has caused a massive increase in the number of potential documents that must be reviewed by the legal team and made available to opposing counsel.

Understand the role and characteristics of responsibility centers, including profit and investment centers.

Learn about controllable and uncontrollable costs and their relevance to managerial decision making and budgeting.

Comprehend direct and indirect fixed costs and their allocation to different responsibility centers.

Understand the preparation process and utility of a flexible budget.

---

Definitions:

Machine Maintenance

The routine or periodic upkeep and repairs of machinery to ensure its optimal functioning and prevent breakdowns.

Relevant Range

The range of activity or volume over which the assumptions about cost behavior are valid.

Cost Driver

Any factor which causes a change in the cost of an activity, influencing the costs of business operations directly.

High-low Method

An approach used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.