The Production Manager of a Company, in an Effort to Gain

question 41

Multiple Choice

The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with her factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This situation could have produced which of the following variances?

• A) Unfavorable materials price variance
• B) Unfavorable labor price variance
• C) Unfavorable labor efficiency variance
• D) Favorable materials efficiency variance

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Definitions:

Individual Differences

Variations among individuals in their cognitive, emotional, and behavioral characteristics.

Level of Motivation

The intensity and direction of a person's energy and determination to engage in and persist with a particular task or goal.

Ideal Self

A person's conception of how they would like to be; it represents one's goals, aspirations, and unique ideal personality.

Defense Mechanisms

Covert psychological tactics utilized to deter stress provoked by undesirable thoughts or feelings.