The Following Labour Standards Have Been Established for a Particular

question 205

Multiple Choice

The following labour standards have been established for a particular product:
The following data pertain to operations concerning the product for the last month:
What was the labour rate variance for the month?

• A) $1,295 favourable.
• B) $1,295 unfavourable.
• C) $2,950 favourable.
• D) $2950 unfavourable.

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Definitions:

"Bird in the Hand" Theory

The investment theory suggesting that investors prefer the certainty of dividend payments over potential capital gains because of the perceived lower risk.

Clientele Effect

The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.

Dividends

Payments made to shareholders out of a company's profits.

Steady Source

A consistent and reliable means of obtaining something, such as income or information.