As the Grapevine Is a Source of Information for Employees

question 88

Multiple Choice

As the grapevine is a source of information for employees, supervisors should

• A) use it as the primary way to communicate with their employees.
• B) ensure that they are the primary source of all the information that flows through the grapevine.
• C) expect that employees sometimes have information before they have delivered it.
• D) be careful not to use lateral forms of communication.

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Definitions:

Direct Labour

The workforce directly involved in the manufacturing of goods or provision of services, whose wages are directly associated with specific products or services.

Labour Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on hours worked and the rates paid.

Standard Direct Labour Rate

refers to the pre-determined cost per hour for direct labor, used in budgeting and measuring labor cost efficiency.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain number of units, multiplied by the standard hourly wage rate.