Two Technicians Are Discussing Labor Time Guides

question 9

Multiple Choice

Two technicians are discussing labor time guides. Technician A says that labor time guides are based on the times of technicians with no experience doing the job. Technician B says that there is no way to complete a job faster than what the time guide states. Who is correct?

• A) A only
• B) B only
• C) Both A and B
• D) Neither A nor B

---

Definitions:

Gain Recognized

The profit that is realized and reported on the financial statements when an asset is sold for more than its carrying amount.

Transfer Date

The specific date on which the ownership or control of an asset is transferred from one party to another.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented as a single figure.

Downstream Transfer

Transactions where a parent company sells or transfers assets to its subsidiary.