Which of the Following Is an Example of a Small

question 7

Multiple Choice

Which of the following is an example of a small, unplanned change?

• A) After renovating the break room, management finds that employees take shorter breaks.
• B) After renovating the break room, management finds that employees are more satisfied with it.
• C) After creating a new policy on breaks, management finds that employees are returning to work on time more frequently.
• D) After creating a new policy on breaks, management finds that employees think that everyone is being treated more fairly.

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Definitions:

Favorable

A term used in finance and accounting to describe a situation or variance that is better than expected or budgeted, often indicating profits or gains.

Labor Efficiency Variance

The difference between the actual labor hours used to produce a good or service and the standard labor hours expected to be used, measuring labor efficiency.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on activity levels.

Favorable

A term used in accounting and finance to describe outcomes or variances that are better than anticipated, indicating a positive performance against the budget or forecast.