Steve Is an Office Manager with a Financial Company

question 129

Multiple Choice

Steve is an office manager with a financial company. His company recently announced that it will soon implement a flextime plan. Under this new system, Steve is likely to find that

• A) he will have to work longer hours.
• B) workers tend to forget their work schedules.
• C) almost all of his workers decide to change to an earlier schedule.
• D) he will have to work harder to maintain high morale among the employees in his office.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in costing to allocate expenses based on how long a machine has been in use.

Setup Cost Per Unit

The cost associated with configuring or preparing equipment for manufacturing a batch of products, divided by the number of units produced.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or facility to allocate indirect costs to products.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or delivery of services.