Putting Constructive Pressure on the Organization to Achieve Good Results

question 6

Multiple Choice

Putting constructive pressure on the organization to achieve good results and operating excellence entails

• A) setting stretch objectives and creating an expectation that company personnel are to do their best in achieving performance targets.
• B) utilizing the full range of motivational techniques and compensation incentives to reward high performance.
• C) treating employees with dignity and respect.
• D) encouraging employees to use initiative and creativity in performing their work.
• E) All of these.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to apply manufacturing overhead costs to products based on activity levels.

Manufacturing Overhead

Manufacturing overhead encompasses all the indirect costs associated with producing goods, excluding direct materials and direct labor expenses.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process of a product.

Manufacturing Overhead

Manufacturing overhead encompasses all the indirect costs associated with producing goods, except for direct labor and direct materials.