Scenario 9.2 Calendar "R" Us Ltd. Is a Small Firm That Manufactures

question 56

Multiple Choice

Scenario 9.2
Calendar "R" Us Ltd. is a small firm that manufactures yearly calendars with a specific focus on middle and high schools in Alberta. They started operations back in 2006 with just 12 employees, two machines, and a small warehouse that served as an office and production and storage facilities. Today, Calendar "R" Us has roughly 60 employees and supplies its calendars to most middle and high schools in Alberta. When employees join they are paid based on their relationship with the owners. Given the rapid growth in its staff complement, and the arbitrary way in which it normally compensates employees, payroll has proven to be quite a challenge for the company as management looks to expand into other provinces.
-Refer to Scenario 9.2. Setting pay levels at Calendar "R" Us can be limited by all EXCEPT which one of the following factors?

• A) employee expectations and motivation
• B) profitability of the firm
• C) productivity of employees
• D) economic condition and competition

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Definitions:

Unadjusted Trial Balance

A financial report that tallies all debit and credit balances from the ledger accounts before any year-end adjustments are made.