Stretch Goals in Budgeting Tend to

question 57

Multiple Choice

Stretch goals in budgeting tend to

• A)decrease line-management participation in attaining corporate goals.
• B)increase failure.
• C)increase anxiety without motivation.
• D)motivate improved performance beyond the status quo.
• E)improve communication and coordination.

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Definitions:

Predetermined Overhead Rate

A rate calculated before an accounting period begins, used to allocate manufacturing overhead to individual jobs or units based on a consistent measure, such as direct labor hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, often used as a basis for allocating costs to products.

Machine-Hours

A measure of production time, reflecting the total hours that machinery is operational during a specific period.

Multiple Overhead Rate

The use of more than one overhead rate to allocate a company's indirect costs more accurately than a single overhead rate.