In 1992, the Enron Development Corporation, a Subsidiary of the Houston-Based

question 84

Multiple Choice

In 1992, the Enron Development Corporation, a subsidiary of the Houston-based energy company, signed a contract to build the largest-ever power plant in India, requiring a total investment of $2.8 billion. After Enron had spent nearly $300 million, the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built. Which of the following are true?

• A)This move by the government played well with Indian voters with visceral distrust of foreign companies since the British colonial era.
• B)This move by the government was widely criticized in India on the grounds that it would deter future foreign investment.
• C)This move by the government was widely criticized in India on the grounds that severe power shortages have been one of the bottlenecks hindering India's economic growth.
• D)None of the above

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Definitions:

Variable Overhead Efficiency Variance

A measure used in managerial accounting to assess the efficiency of variable overhead resource utilization, comparing the actual costs incurred to what should have been incurred at a given level of production.

Unfavorable

A term used to describe outcomes or variances that are negative for a business, such as lower sales or higher costs than expected.

Favorable

A term denoting a financial result that is better than expected or budgeted.

Standard Cost Card

A standard cost card details the expected costs of materials, labor, and overhead associated with producing a product.