A Situation Where Every Director Serves a Three-Year Term and the Terms

question 43

Multiple Choice

A situation where every director serves a three-year term and the terms are staggered so that only one-third of the directors are up for election each year is called a:

• A)white knight.
• B)classified board.
• C)poison pill.
• D)golden parachute.

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Definitions:

Supplies Variance

The difference between the budgeted cost of supplies and the actual cost incurred.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, which can indicate changes in market prices or issues with budgeting.

Raw Material

Basic materials that are used in the production process to manufacture goods.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to each unit of production, which may vary with the level of output.