Which of the Following Is the First and Most Basic

question 31

Multiple Choice

Which of the following is the first and most basic component in a management control system?

• A) the organization's long-range budget
• B) the organization's goals
• C) the stockholders' goals
• D) managerial effort

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Definitions:

Ending Inventories

The final quantity and value of materials, work-in-process, and finished goods that a company holds at the end of an accounting period.

Direct Labor Budget

A projection of the total costs associated with the direct labor needed for a specific period, based on projected levels of production or services.

Direct Labor-Hour

Direct labor-hour refers to the amount of labor time spent by workers directly manufacturing a product or delivering a service, used as a basis for allocating overhead costs.

Labor Rate

The amount paid per hour of labor, including wages and sometimes additional benefits, for direct and indirect labor.