The Following Information Describes a Company's Usage of Direct Labor

question 181

Multiple Choice

The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance is:

• A) $29,000 unfavorable.
• B) $29,000 favorable.
• C) $22,500 unfavorable.
• D) $52,500 favorable.
• E) $52,500 unfavorable.

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Definitions:

Price/earnings Ratio

The Price/Earnings Ratio (P/E Ratio) is a valuation metric that compares the current share price of a company to its per-share earnings, used by investors to evaluate the investment attractiveness of a company.

Excess Cash

Refers to the amount of cash a company holds that is beyond what it requires for day-to-day operations and investments.

Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.

Share Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares and potentially increasing share value.