After Comparing Future Demand and Internal Supply,managers Can Make Plans

question 163

True/False

After comparing future demand and internal supply,managers can make plans to manage predicted shortfalls or overstaffing.If a shortfall is predicted,extra employees can be transferred and early retirement may be encouraged.

---

Definitions:

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, direct labor, and manufacturing overhead.

Overhead Application Rate

A rate used to allocate overhead costs to products or cost objects based on a predetermined formula.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing or producing a company's products.

Budgeted Overhead

Forecasted costs associated with running a company that are not directly tied to a specific product or service.