Delmus' Performance Reports Have Been Increasingly Poor,and He Seems to Have

question 65

Multiple Choice

Delmus' performance reports have been increasingly poor,and he seems to have negative relationships with other workers in his department.His line manager has taken him aside twice to discuss his behavior and work and has offered him time to improve,but there has been very little positive progress.Management decides to end the employment relationship with Delmus.This is an example of a:

• A) layoff.
• B) quit.
• C) discharge.
• D) buyout.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity of materials supposed to be used, multiplied by the standard cost per unit.

Standard Quantity

The predetermined amount of materials or inputs that should be used in the production of goods or services under normal operating conditions.

Standard Price

A predetermined cost assigned to goods and services, used for budgeting, cost control, and performance evaluation purposes.

Materials Price Variance

The difference between the actual cost of materials and the standard cost multiplied by the actual quantity used.