Steely Percussion Inc

question 397

Multiple Choice

Steely Percussion Inc. briefly tried to implement a flextime system, only to abandon it after a few months. Which of the following is the most likely reason Steely would drop its flextime plan?

• A) It caused an increase in traffic congestion.
• B) It often made communication among employees more difficult.
• C) The employees resented being required to come to work early or stay late.
• D) Workers tend to be less productive when they have to work longer hours in a single day.

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Definitions:

Divisional Operating Income

The profit earned by a specific division or segment of a company after deducting all direct and indirect expenses but before interest and taxes.

Top Management

The highest tier of executives and decision-makers in an organization, responsible for overall strategy and policies.

Cost Price Approach

An approach to transfer pricing that uses cost as the basis for setting the transfer price.

Transfer Price

The price charged one decentralized unit by another for the goods or services provided.