Assume That You Must Write a Memo to Company Employees

question 2

Multiple Choice

Assume that you must write a memo to company employees announcing that the Internal Revenue Service has filed suit against the company. Which of the following sentences would most effectively reassure your readers?

• A) On behalf of top management, I apologize for any disruption in work that this legal action may cause.
• B) Unlike so many other firms indicted for violations of the tax code, our company has done nothing wrong.
• C) We believe the company will be able to function normally during this investigation.
• D) The exact nature of this baseless legal action will be announced at a later date.
• E) The top management team is meeting today to decide on the company's course of action.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, like utilities, maintenance, and salaries for production managers.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate projected overhead costs to products or services based on a chosen activity base.

Raw Materials

The basic substances or components that are used in the manufacturing process to produce finished goods.

T-Accounts

A visual representation used in accounting to depict the debits and credits of an account, showing two sides of transactions within a ledger.