Which of the Following Is an Assumption of the Carnegie

question 61

Multiple Choice

Which of the following is an assumption of the Carnegie model of decision making?

• A) Managers have all the information necessary to make decisions.
• B) Managers select a limited range of alternatives.
• C) Managers agree about what an organization's most important goals are.
• D) Managers make changes that are only slightly different from existing procedures.

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Definitions:

Variable Costing

An accounting method that only considers variable costs for product costing, excluding fixed manufacturing overhead.

Absorption Costing

A costing method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs, with fixed overhead expenses treated as period costs.

Carpenter Wages

Carpenter wages are the compensation paid to skilled tradespeople specializing in building, constructing, and repairing structures primarily made of wood.