Dan Louis Is the Supervisor of the Assembly Department of Wiggerman

question 62

Multiple Choice

Dan Louis is the supervisor of the Assembly Department of Wiggerman Corporation.He has control over and is responsible for manufacturing costs traced to the department.The Assembly Department is an example of a(n) :

• A)cost center.
• B)inventory center.
• C)supervised work center.
• D)worker's center.

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Definitions:

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Flexible Resources

Assets, such as labor or equipment, that can be adjusted or redirected in response to changing production or operational requirements.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, representing the portion of sales revenue that contributes to covering fixed costs.