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