Your Company Has Just Adopted a Policy of Tracking Employee

question 1

Multiple Choice

Your company has just adopted a policy of tracking employee emails to determine which employee is leaking confidential information. Because you know that this policy will be unpopular with company employees, which is the best strategy for announcing the policy to employees in a memorandum?

• A) Present the reasoning behind the new policy and then state the policy.
• B) State the policy and then provide the reasoning.
• C) State only the new policy.
• D) State the reasoning behind the new policy and then state the policy in a follow-up memorandum.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of units for sale during a period by averaging the costs of all similar goods available.

Equivalent Units

A concept used in cost accounting to standardize the amounts of work done on incomplete units, to fully completed units, thereby enabling a consistent cost analysis.

Overhead Allocation

The process of assigning indirect costs of production, such as utilities and rent, to specific cost objects like products or departments.

Factory Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for production supervisors.