To Be Effective an Operations Manager Needs an Integrated View

question 4

True/False

To be effective an operations manager needs an integrated view of business organizations.

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Definitions:

Service Department Cost Allocation

The process of assigning indirect costs from service departments (like maintenance or HR) to producing departments based on their usage of services.

Step-Down Method

The step-down method is an accounting technique used to allocate service department costs to production departments, often in a sequential manner that recognizes service departments' interdependencies.

Direct Method

A method of computing the net cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.

Cost of Service Departments

Expenses connected with the operations that provide supportive services within a company but do not directly contribute to the production process.