Craig Manufacturing Company Operates Its Three Production Departments Within a Single

question 126

Multiple Choice

Craig Manufacturing Company operates its three production departments within a single facility.Each department produces its own products and maintains its own production equipment.Although they share a common facility,each department is overseen by a separate supervisor.Which one of the following costs is a direct cost of each department?

• A) Lease payment on facility
• B) Depreciation on the facility
• C) Production supervisor salary
• D) Plant manager salary

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Definitions:

Benchmarking

The process of comparing key points within your business with comparable points in another external entity.

External Entity

An organization, group, or individual that exists outside of the company and interacts with the business through transactions, partnerships, or other forms of engagement.

Total Quality Management

A methodology that emphasizes the importance of organizational culture in achieving long-term success through customer satisfaction and continuous improvement.

Feedforward Control

A management strategy that anticipates problems before they occur by monitoring inputs and taking preventative measures.