Rupert Is the Business Head at Micron Softwares

question 4

Multiple Choice

Rupert is the business head at Micron Softwares. The firm has set its revenue target for the year at $5 million. Rupert will have to ensure that this financial target is met by providing necessary direction and guidance to the different department heads who are directly responsible for the execution of the work performed by their departments. In this scenario, the organization's various department heads have a(n) ________.

• A) operating responsibility
• B) consultative responsibility
• C) tacit responsibility
• D) latent responsibility
• E) specific responsibility

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Definitions:

Capacity

The maximum output a system can produce over a given period of time. It's crucial for planning and efficiency improvement.

Machine-Hours

A measure of production time or capacity based on the number of hours machines are in operation.

Unused Capacity

The available production or service capability that is not being utilized by a business.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual jobs or products based on a certain activity base, such as machine hours or labor hours.