Figure 11-2

question 132

Multiple Choice

Figure 11-2. Lawson,Inc.produces plastic grocery bags.Lawson has developed a static budget for the month of July based on 8,000 direct labor hours.During the quarter,the actual activity was 9,000 direct labor hours.Data for July are summarized as follows:
Refer to Figure 11-2.Comparing the static budget to the actual costs,we can conclude that

• A)the manager spent more than should have been spent.
• B)immediate action is needed to reduce costs.
• C)the plant manager was clearly not efficient.
• D)the plant manager should be dismissed.
• E)none of these.

Understand the concept of nonrivalry in consumption and its application to social goods and common resources.

Understand the legal principles and defenses related to defamation law.

Identify the circumstances and requirements under various privacy legislation including the Personal Information Protection and Electronic Documents Act.

Distinguish between different torts relating to business and personal reputations.

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Definitions:

Price Level

The average of current prices across all goods and services in an economy, indicating the overall cost of living or inflation rate.

Purchasing Power

How much goods or services one unit of currency can procure, defining the currency's value.

Liquid Assets

Assets that can be quickly and easily converted into cash without significant loss in value.

Full Employment Level

An economic condition in which virtually all individuals willing and able to work at prevailing wage rates are employed.