John Is a Manager at XYZ Inc

question 24

Multiple Choice

John is a manager at XYZ Inc. His subordinates respect him, and several have made comments such as, "I want to be as good a manager as he is one day." He is highly respected and admired. John holds _____ power.

• A) reward
• B) coercive
• C) expert
• D) referent

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Definitions:

Materials Quantity Variance

A calculation of the difference between actual material usage and expected usage in production, multiplied by the standard cost for each unit.

Materials Price Variance

The difference between the actual cost of materials and the expected cost based on standard prices.

Raw Materials

Basic substances or components that are used in the initial stages of the manufacturing process to produce goods.

Raw Materials Inventory

The stock of unprocessed materials that are used in the manufacturing process to produce finished goods.