If Managers of a Company Do Not Understand the Behavior

question 60

True/False

If managers of a company do not understand the behavior of its costs,they are likely to make poor decisions about the company's operations.

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Definitions:

Automation

The technology by which a process or procedure is performed with minimal human assistance.

Machine Hours

A metric for the total time machines or equipment have been operational, used to allocate manufacturing overhead costs.

Step-down Method

A method used in cost accounting to allocate overhead costs to specific products or services in a hierarchical manner.

Training Department

A division within an organization focusing on the development of employees' skills and knowledge through various training programs.