Additional Case 14.1 You Are the HR Director at Catalina Manufacturing. the Firm

question 23

Multiple Choice

Additional Case 14.1
You are the HR director at Catalina Manufacturing. The firm is considering random drug testing for employees at its California, New York, Pennsylvania, and Texas facilities. Management believes that the assembly of high explosive devices and a recent rash of drug-related accidents make drug testing imperative.
-Refer to Additional Case 14.1.Which of the following questions is LEAST relevant to implementing a random drug-testing policy at Catalina?

• A) How can managers make comparisons of drug test results?
• B) How should employees with positive drug test results be treated?
• C) How will managers maintain security over urine samples?
• D) How can employees legally using prescription drugs be protected?

Grasp the stand-alone principle in project evaluation.

Identify and explain the tax implications related to project cash flows, including depreciation tax shields.

Understand how to analyze and select projects based on various financial evaluation methods (e.g., NPV, IRR).

Distinguish between relevant and irrelevant costs in project decision-making, understanding the impact of sunk and opportunity costs.

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Definitions:

Process Cost Accounting

An accounting methodology used for homogenous products that accumulates costs for each process or department and assigns them to units of output.

Factory Overhead

All indirect costs associated with manufacturing, encompassing the expenses incurred in the process of producing goods besides direct materials and direct labor.

Work In Process

Inventory that is in the production process but not yet completed; reflects goods that are being manufactured but aren't finished products.

Average Costing

An inventory costing method where goods are priced based on the average cost of all similar items in inventory, suitable for homogeneous products.