Which of the Following Is True About Long-Range and Short-Range

question 19

Multiple Choice

Which of the following is true about long-range and short-range plans?

• A)There is a lot more permanency to long-term plans today than there was in the past.
• B)Long-term plans are not subject to frequent revisions today.
• C)Long-term plans typically look at least ten years or more into the future.
• D)The time frames of planning are shifting today.
• E)Lower management sets its own context to work on short-term plans.

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Definitions:

Activity-Based Costing

Activity-based costing (ABC) is an accounting method that assigns overhead and indirect costs to specific activities, providing more accurate measures of the costs of producing specific products or services.

Activity Drivers

Factors that influence the costs and efficiency of business operations, serving as the basis for allocating expenses in activity-based costing.

Activities

In a business context, activities refer to all forms of operations and processes undertaken by an organization to achieve its objectives, including but not limited to operating, investing, and financing activities.

Departmental Overhead Rates

Specific rates used to allocate overhead costs to particular departments, based on their share of resources used or produced.