Bukowitz Inc has a favorable direct labor rate variance. Which of the following would be the most likely reason for this variance?

A) The company used lower-paid workers in the production process more than they had expected.
B) Employees took a shorter amount of time to produce the product than expected.
C) The company used a standard direct labor rate that was too low.
D) Employees used less direct materials in the production process than expected.


A

Business

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Ramirez Stores purchased a trademark at the beginning of 2013 for $340,000 . Economic benefits were expected for 10 years, but the trademark's legal life was 20 years. Also, during 2013, Ramirez incurred research and development costs of $200,000 . The book value of the trademarks at December 31, 2013, is

a. $506,000 b. $306,000 c. $323,000 d. $486,000

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The sales opportunity grid could best be used in conjunction with _____

a. category management b. bottom-up retail plans c. short-run plans d. top-down retail plans

Business

When one party's target settlement is the other party's resistance point, they are likely to be:

A. Engaged in integrative bargaining. B. Engaged in distributive bargaining. C. Unable to reach an agreement. D. Quick to settle on a contract.

Business

Which of the following statements is CORRECT?

A. The constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years. B. If a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, then the stock's dividend yield is also 5%. C. The stock valuation model, P0 = D1/(rs - g), can be used to value firms whose dividends are expected to decline at a constant rate, i.e., to grow at a negative rate. D. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. E. The constant growth model cannot be used for a zero growth stock, wherein the dividend is expected to remain constant over time.

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