Which Statement Does NOT Accurately Describe Developing a Communication Plan

question 19

Multiple Choice

Which statement does NOT accurately describe developing a communication plan to introduce a new compensation system?

• A) Employees need to know the rationale behind the change.
• B) Ensure it is an on-going process; communicate often.
• C) Various modes of communications should be used.
• D) It is often a recipe for failure if frontline managers are told of impending changes early in the process.

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Definitions:

Overhead Rate

The rate at which indirect costs are allocated to produced goods or services, often expressed as a percentage of direct labor or materials cost.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, improving costing accuracy.

Overhead Cost

Overhead Cost encompasses indirect expenses related to operating a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Departmental Overhead Rate

The rate used to allocate overhead costs to individual departments based on certain criteria or activities.