Businesses That Are Separated into Two or More Manageable Units

question 115

Multiple Choice

Businesses that are separated into two or more manageable units in which managers have authority and responsibility for operations are said to be

• A)centralized.
• B)consolidated.
• C)diversified.
• D)decentralized.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Allocation Base

The criteria or standard used for distributing overhead costs to various cost objects, such as products, services, or departments.

Assembly Department

A specific section in a manufacturing facility where components are assembled into finished goods.

Machine Hours

A measure of the time machines are in operation, used to allocate machine-related expenses to production activities.