As Managers Use Less and Different Types of Direct Materials

question 86

Multiple Choice

As managers use less and different types of direct materials, which of the following standards do managers focus on to enhance sustainability in the workplace?

• A)Quantity/Efficiency standard
• B)Price standard
• C)Flexible standard
• D)Both A and B

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Definitions:

Equipment Undervalued

A situation where the book value of equipment is less than its current market value or replacement cost.

Acquisition Method

An accounting approach used for consolidating the financial statements of two companies when one acquires control of the other.

Goodwill

A non-material asset occurring from the acquisition of a company at a premium above the fair valuation of its identifiable net assets.

Consolidated Balance Sheet

A financial statement that aggregates the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries.