As Responsibility Reports Are Rolled Up into Reports for Higher

question 38

Multiple Choice

As responsibility reports are rolled up into reports for higher level executives,they

• A) become less detailed.
• B) become more detailed.
• C) become narrower in scope.
• D) look about the same.

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Definitions:

Non-Manufacturing Costs

Expenses not directly related to the production of goods, such as administrative, marketing, and sales costs.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, salaries of indirect labor, and equipment depreciation.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor.

Prime Costs

The direct costs of production, typically consisting of direct materials and direct labor.