It Is Important That a Standard Rate Rather Than Actual

question 48

Multiple Choice

It is important that a standard rate rather than actual expenses be used to charge service department costs to producing departments so that:

• A)production department managers know the amount of usage at the beginning of the year.
• B)extra costs resulting from inefficient operations in service departments cannot be passed on to the production departments.
• C)service department managers don't need to worry about meeting their budgets.
• D)extra costs resulting from inefficient operations in production departments can not be passed on to the service departments.

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Definitions:

Decision-making Process

A systematic series of steps taken by individuals or organizations to identify and evaluate options for making choices among alternative courses of action.

Organizational Structures

The systems of authority, communication, and allocation of responsibilities within a company or an organization.

Cultural Effectiveness

The ability to understand, communicate with, and effectively interact with people across cultures.

Rewards And Punishments

A system of incentives and disincentives used to influence behavior, often employed in organizational contexts to motivate employees.