act 300 test 2
Studies have shown that improvements in quality can lead to
Increases in productivity - lower mfging costs
cost allocation of shared facilities cost is intended to remind managers of
both the cost and value of using shared resources
The most effective basis for cost allocation exists when what is determined
cause and effect relationship
Conformance to a quality specification expressed as a specified range around a target is
goalpost conformance
in making decisions about whether to sell or further process joint products, allocation of common or joint costs is
irrelevant
an overhead cost that can be traced directly to either a service or production department
is charged directly to that department
the evaluation of upper level managers of the performance of mid level managers is
management control
performance evaluation in most firms is applied to
many different levels from top mgt down to individual production and sales employees
what are the four major quality cost failures
prevention, appraisal (inspection), internal failure costs, external failure costs
from a strategic standpoint, profit centers tend to
provide incentive for coordination among managers of different units
which method considers all reciprocal flows between service departments through simultaneous equations
reciprocal method
a strategic business unit (SBI) consists of a well defined set of controllable operating activities over/about which the SBU manager is
responsible for strategy, execution, and performance
among the benefits of centralized mgt in a firm is (are)
utilization of top mgt expertise
a master budget is typically prepared for
a one year period