An Evaluation of the Effectiveness and Efficiency of Various Systems

question 71

Multiple Choice

An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) :

• A) standard.
• B) management audit.
• C) innovation catalyst.
• D) budget.
• E) profit and loss statement.

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Definitions:

Product Cost

The total amount of costs directly and indirectly involved in manufacturing a product or delivering a service.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Super-Variable Costing

A costing method that classifies all direct labor and manufacturing overhead costs as fixed period costs and only direct materials as a variable product cost.

Variable Costing

An accounting method that only assigns variable costs to inventory, treating fixed costs as period expenses.