You Have Just Been Asked by Your Manager to Compile

question 141

Multiple Choice

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know

• A) that there are no 4-digit NAICS codes.
• B) that there is only one firm to find, since each firm has its own 4-digit NAICS code.
• C) that it is possible that no data will be available, even if there is one large firm in California in that 4-digit industry.
• D) that she is talking about the New Auto Industry Classification Survey.
• E) that none of these alternatives is correct.

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Definitions:

Volume Variance

Volume variance measures the difference between the expected production volume and the actual production volume, impacting the budget and operational efficiency.

Standard Direct Labour Rate

The predetermined cost per hour for direct labor, used in budgeting and measuring operational efficiency.

Fringe Benefits

Additional compensation provided to employees beyond their normal wages or salaries, such as health insurance, retirement plans, and paid vacations.

Standard Costing System

An accounting method that assigns predetermined costs to goods and services, used to control costs and measure performance.