When Computers Are Used to Replace Workers on a Factory

question 90

Multiple Choice

When computers are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

• A) will increase only if the company can increase the price of its product.
• B) is likely to increase.
• C) is likely to decrease.
• D) will not change.

Calculate net income attributable to the noncontrolling interest.

Understand the worksheet process in a father-son-grandson ownership configuration.

Compute consolidated net income in various ownership scenarios.

Understand the treasury stock approach in accounting for a subsidiary's investment in parent company stock.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in the cost of goods sold, treating fixed costs as period expenses.

Absorption Costing

An accounting method that captures all the manufacturing costs, including both fixed and variable costs, associated with producing a specific product.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of supervisors, and depreciation of factory equipment.

Variable Costing

An accounting method that includes only variable production costs--such as materials, labor, and overhead--in the cost of a unit of product.