Administrative Controls Are

question 28

Multiple Choice

Administrative controls are

• A)concerned with efficient operations and adherence to managerial policies.
• B)concerned with the reliability of the financial statements.
• C)the responsibility of the company's auditors.
• D)concerned primarily with safeguarding assets.

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Definitions:

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base, used across an entire plant or facility.

Departmental Predetermined Overhead Rates

A method of calculating overhead rates for specific departments within a company, rather than using a single overhead rate for the entire organization.

Machine-Hours

A measure of production output or operational time, calculated by the number of hours a machine is run during a specific period.

Markup

A pricing strategy where a seller adds to the cost of the goods to determine the selling price, aimed at ensuring a profit margin above cost.