The Legitimate Right to Make Decisions and to Tell Other

question 24

Multiple Choice

The legitimate right to make decisions and to tell other people what to do is referred to as

• A)hierarchy.
• B)delegation.
• C)specialization.
• D)legitimacy.
• E)authority.

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Definitions:

Direct Labor

Refers to the wages and benefits given to employees who are directly involved in the production of goods or services.

Overapplied Overhead

A situation where the allocated overhead cost to products or services exceeds the actual overhead costs incurred.

Underapplied Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Direct Labor Costs

Expenses associated with the work directly done by employees on the company's products or services.