Which of the Following Is Not a Reason Companies Use

question 69

Multiple Choice

Which of the following is not a reason companies use key performance indicators?

• A)To mandate to report company performance to stakeholders
• B)To mncrease accuracy of business decisions
• C)To improve company performance
• D)All of these answer choices are reasons companies use key performance indicators.

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Definitions:

Manufacturing Overhead

The indirect costs associated with manufacturing, not directly tied to a specific product, such as maintenance, utilities, and salaries of supervisors.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

Underapplied Overhead

Occurs when the allocated overhead costs are less than the actual overhead costs incurred.

Job Costing System

A cost accounting system that tracks the expenses of a specific job against its revenue to determine profitability.