How Many of the Following Decisions Would Be Made by Internal

question 31

Multiple Choice

How many of the following decisions would be made by internal as opposed to external decision makers: setting production targets, product pricing, choosing whether to lease or buy assets, and monitoring compliance with company reporting requirements?

• A) 1
• B) 2
• C) 3
• D) 4

---

Definitions:

Conversion Costs

The sum of labor and overhead expenses incurred in the process of transforming raw materials into finished goods.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Assembly Department

The section of a manufacturing plant where components are put together to form a finished product.

Conversion Costs

Costs related to turning raw materials into finished goods, typically including direct labor and manufacturing overhead.