Floyd Would Like to Be Able to Monitor His Employees

question 56

Multiple Choice

Floyd would like to be able to monitor his employees' Internet activity because:

• A)his customers cannot view his company website if his employees are surfing the Web.
• B)employees have to share Internet access and he wants to be fair to everyone.
• C)such activity hinders workplace productivity.
• D)his data plan allows only 5 gigabytes of access every month and overage charges are expensive.

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Definitions:

Direct Labor Time Variance

The difference between the actual hours worked by employees at the standard rate and the expected hours at the standard rate, for manufacturing a product.

Total Cost Variance

The difference between the budgeted or standard cost of production and the actual cost incurred.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, indicating cost management efficiency.

Direct Materials Quantity Variance

The discrepancy between the true usage of direct materials in production processes and the forecasted standard usage, multiplied by the standard unit cost.