The Decision Regarding the Number of Employees to Be Hired

question 36

Multiple Choice

The decision regarding the number of employees to be hired for the cafeteria is part of operational planning because

• A) it translates broad strategic goals and plans into specific goals and plans relevant to a particular portion of the organization.
• B) it focuses on the major actions a unit must take to fulfill its part of the strategic plan.
• C) it involves a specific procedure that is required at lower levels of the organization.
• D) it involves making decisions about the organization's long-term goals and strategies.
• E) it has a strong external orientation and covers major portions of the organization.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product or service.

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied to all jobs or products to allocate manufacturing overhead costs.

Machine-Hours

Machine-Hours indicate the total hours that machinery is operating during a specific period of time.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, maintenance, and management salaries.