A Centralized Organization Is More Responsive to Opportunities and Problems

question 26

True/False

A centralized organization is more responsive to opportunities and problems than a decentralized organization where senior managers,who are less involved in daily operations than lower-level managers,make decisions.

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Definitions:

Variable Manufacturing Overhead Standards

Pre-established rates or quantities that are used to assign variable overhead costs to products based on levels of activity such as labor or machine hours.

Variable Overhead Rate Variance

The variance between the actual variable overhead costs that were incurred and the anticipated variable overhead calculated according to the real amount of activity.

Supplies Cost

The expense incurred to acquire supplies necessary for the production of goods or the operation of a business.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected variable overhead costs based on standard cost accounting practices.