Infront of you are 4 statements discussing the topic of new administrative approaches and the loss of relevance of the traditional costing –
In organizations with a complex production process, and/or the indirect component in the produced unit is essential , and/or the variety of the products and services is wide so the usage of traditional costing will be for supervision only and not for decision making.
Only in organizations that the indirect component in the produced unit is essential so the usage of traditional costing will be for supervision and attribution and not for decision making.
The hourly rate measure is obtained from dividing the total production costs from the number of direct work hours.
In the administrative approach, costs that aren’t contributing value to the organization are brought to minimum.
Which of the sentences is correct?
Only the 2 and 4.
Only 1,3, and 4.
All the sentences are correct.
Only 1 and 4.
Only 1 2 3