Answer:
Bounded Rationality
Explanation:
To begin with, it is essential to understand the concept of departmentalization.
Departmentalization centers on the idea that departments/divisions within an organization are grouped and/or sectioned, using some identified benchmarks. In extension, Departmentalizing, is simply the acts of engaging in departmentalization.
Bounded rationality, is a phenomenon that states that human reasoning and extension, logic could be threatened by a number of constraints. The constraints here could be human, material and physical resources. The implication is that an individual is not in possession of full details and information that could influence or shape his position.
Hence, by departmentalizing, an organization has placed a constraint on the amount of information accessible to that department, under the bigger context of an organization. Thus, the departments' rationality has been bounded and this could ultimately spiral into poor decision making, principally because of lack of detailed information.
Answer:
Beginning Raw material Inventory = Direct materials used - Raw Materials purchases + Ending raw materials inventory
= 188,420 - 159,120 + 22,610
= $51,910
Total cost of work in process = Cost of goods manufactured + Work in process (12/31)
= 544,240 + 83,230
= $627,470
Total Manufacturing costs = Total cost of work in process - Work in process (1/1)
= 627,470 - 220,940
= $406,530
Direct labor = Total Manufacturing costs - Total overhead - Direct materials used
= 406,530 - 139,320 - 188,420
= $78,790
Answer: • provide a permanent record for the cost of goods sold account
• monitor costs incurred to date and to predict and control costs for each job.
• provide a subsidiary ledger for the finished goods inventory account.
Explanation:
Job cost sheet refers to the document that is used for the recording of the manufacturing costs and it is used as a subsidiary ledger for the work in process account due to the fact that it contains every details about the job in process.
From the options given, the job cost sheets can be used to:
• provide a permanent record for the cost of goods sold account
• monitor costs incurred to date and to predict and control costs for each job.
• provide a subsidiary ledger for the finished goods inventory account.
Answer: (A) True
Explanation:
Yes, the given statement is true that the risk pooling is one of the type of strategy which basically helps in explaining about the demand variability and also decrease the aggregate demand variance in the market.
The main objective of the risk pooling is to maintain the inventory stock level and also avoiding the out of stock situation in the management.
By using the risk pooling strategy the various types of warehouse and companies are reduce the level of safety stock in the supply chain management and also transferring their risk to another organization such as insurance company.
Therefore, the given statement is true.
Answer: Analysis of company's performance by the management.
Explanation: In the management discussion and analysis, the upper management of the company analyze and comment on the qualitative and quantitative characteristic of a company. This is seen as a secondary information in the company's yearly financial statement.
The MD and A, is considered valuable by investors as sometimes the management also comments about the upcoming projects of the company in such statements.
