Question
22. Decentralization may increase a firm's costs because A) information costs rise as top management needs additional reports to learn about decentralized units B) lower
22. Decentralization may increase a firm's costs because A) information costs rise as top management needs additional reports to learn about decentralized units B) lower level managers may make decisions that are not in the best interests of the firm as a whole C) lower level managers duplicate services that may be less expensive if centralized D) all of the above
23. Use the following information to answer this question. Budgeted factory overhead $90,000 Actual factory overhead $82,000 Budgeted machine hours 40,000 Actual machine hours 35,500 Assume machine hours are the cost driver of factory overhead costs. What amount of factory overhead is applied to the compony? A) $71887.5 B) $90,000 C) $79,875 D) $72,775
24. Which of the following statements concerning job-order costing is TRUE? A) Job-order costing is not a common system used in product costing. B) Job-order costing is used by the chemical industry. C) Job-order costing deals with great masses of similar items. D) Job-order costing applies costs to specific jobs which may consist of a single unit or a few similar units.
25. Organizations should choose performance metrics that improve the alignment of managerial incentives with A) goal congruence B) organizational objectives C) ethical behavior D) managerial effort
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