Which of the following conditions normally would not indicate that standard costs should be revised?
A) The engineering department has revised product specifications in responding to customer suggestions.
B) The company has signed a new union contract which increases the factory wages on average by $2.00 an hour.
C) Actual costs differed from standard costs for the preceding week.
D) The world price of raw materials increased.
C
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Work in process inventory does not contain indirect labor costs
Indicate whether the statement is true or false
A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)
A) defined contribution plan B) defined benefit plan C) unfunded plan D) funded plan
Emerald Company issued additional shares of stock. Which of the following is true with regard to the effect of the stock issuance transaction on Emerald's ratio computations?
A) Earnings per share decreases B) The debt to equity ratio increases C) The asset turnover ratio increases D) Return on equity remained unchanged
Which of the following statements best illustrates the use of critical thinking skills by a lawyer?
A) A lawyer raises a courtroom objection when her opponent engages in critical commentary about an opponent without prior permission of the judge. B) A lawyer develops a closing argument using visual aids that is likely to impress a jury comprised of ordinary citizens. C) A lawyer approaches a difficult problem by gathering all relevant facts, determining the real issue in dispute, and applying reason to reach a conclusion. D) A lawyer scientifically analyzes the handwriting of a defense witness to determine the potential for bias.