Kyle Creative Solutions,an Advertising Firm Based in Lakeland,Florida,achieves Cost-Cutting Goals

question 15

Multiple Choice

Kyle Creative Solutions,an advertising firm based in Lakeland,Florida,achieves cost-cutting goals through significant reduction in use of resources,better time-management,and increased productivity.The top managers of the firm decide to reward the employees of the firm,for their contribution towards the company's goals,by distributing a portion of the savings amongst the employees.In this example,Kyle Creative Solutions uses which of the following incentive programs?

• A) commission
• B) cafeteria plan
• C) gain sharing
• D) sliding-scale plans
• E) wellness programs

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Definitions:

Raw Material Price

This refers to the cost of basic materials that are used in the production of goods.

FOH Budget Variance

The difference between the budgeted factory overhead costs and the actual overhead costs incurred.

FOH Volume Variance

The difference between the budgeted fixed overhead and the applied amount based on the actual activity level.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, including rent, depreciation, and salaries of certain employees in a manufacturing facility.