Akers Corporation Reported Net Income $36,000; Net Sales $480,000; and Average

question 39

Multiple Choice

Akers Corporation reported net income $36,000; net sales $480,000; and average assets $800,000 for 2017. What is the 2017 profit margin?

• A) 4.5%
• B) 7.5%
• C) 13.3%
• D) 60.0%

Distinguish between different types of variances, including direct labor time variance, direct labor rate variance, and direct materials quantity variance.

Recognize the calculation and interpretation of favorable and unfavorable variances.

Identify the roles of standards in evaluating price and quantity variances for both direct materials and direct labor.

Apply the concept of variance analysis to assess operational efficiency.

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Definitions:

Locke

Refers to John Locke, an influential 17th-century English philosopher known for his work on political philosophy, epistemology, and education.

Self-Efficacy Theory

A psychological theory proposing that individuals' belief in their ability to perform a task influences their motivation and performance in that task.

Externally Imposed Goals

Objectives or targets set by outside entities, such as regulators or parent companies, that an organization needs to achieve.

Supervisors

Individuals in a position of authority responsible for overseeing the work of others and ensuring tasks are completed effectively.