A Plan That Communicates Broad Guidelines for Employees to Use

question 17

Multiple Choice

A plan that communicates broad guidelines for employees to use in their decisions and actions is called a __________.

• A) policy
• B) project plan
• C) procedure
• D) budget

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Definitions:

Product Costs

Costs directly associated with the creation of a product, including materials, labor, and manufacturing overhead.

GAAP

Generally Accepted Accounting Principles, a set of standards and procedures for financial reporting used in the United States.

Variable Costing

An accounting method that only includes variable costs in product costing and decision-making.

Fixed Costs

Outgoings such as rent, salaries, and premiums for insurance that are unaffected by the quantity of sales or production.