Conflicts of Interest

question 7

Multiple Choice

Conflicts of interest

• A) have become less frequent today.
• B) always involve personal financial gain.
• C) are morally worrisome only when the employee acts to the detriment of the company.
• D) occur when employees' have special or private interests that are substantial enough to interfere with their job duties.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost and the standard cost of labor per unit of output, indicating efficiency in labor use.

Actual Costs

The real financial expenditures incurred by a company, as opposed to budgeted or estimated costs.

Standard Costs

Predetermined costs assigned to goods and services, used as target costs or benchmarks to compare with actual costs in order to manage and control costs.

Total Direct Labor Variance

The difference between the actual cost of direct labor used to produce goods and the standard cost of direct labor expected for those goods.