The Degree to Which Decision Making Is Distributed to Lower-Level

question 108

Multiple Choice

The degree to which decision making is distributed to lower-level employees is termed

• A)centralization.
• B)decentralization.
• C)departmentalization.
• D)work specialization.
• E)task specialization.

---

Definitions:

Rate Variance

The difference between the actual rate paid for inputs and the standard rate expected, often related to labor or manufacturing overhead.

Overhead Applied

The process of allocating overhead costs to specific cost objects, such as products or jobs, based on a predetermined rate or method.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, calculated before the production period begins.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours.