The Scenario That Says Resources Should Be Spent If the Expected

question 61

Multiple Choice

The scenario that says resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

• A) cost-benefit approach
• B) behavioral and technical considerations
• C) balanced scorecard
• D) different costs for different purposes

Understand the role of working capital in the operational efficiency of a business.

Identify the types of short-term financing and their appropriate applications.

Analyze the strategies for managing receivables and the implications on cash flow.

Understand the absolute value concept and compute the absolute value of real numbers.

---

Definitions:

Direct Labor Price Variance

The difference between the actual cost of direct labor and the expected (or standard) cost of direct labor used during production.

Direct Labor Payroll

The total amount of money paid to employees directly involved in manufacturing products or providing services.

Standard Rate of Pay

The regular amount of pay given for standard work hours or for performing a standard task or job.

Unfavorable Variance

The difference between actual costs and standard or budgeted costs when actual costs are higher, indicating lower profitability.