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

question 76

Multiple Choice

The production manager of a company,in an effort to gain a promotion,negotiated a new labor contract with the 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 would have produced a(n) ________.

• A)unfavorable direct materials cost variance
• B)favorable direct labor cost variance
• C)favorable direct labor efficiency variance
• D)unfavorable direct materials efficiency variance

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Definitions:

Job Performance

The level of effectiveness and efficiency with which an employee carries out their job duties.

Surface-Level Diversity

Involves individual differences in visible attributes such as race, sex, age, and physical abilities.

Personality

Refers to the unique and consistent set of behaviors, feelings, and thoughts that characterize an individual.

Values

core beliefs that influence how individuals behave and make decisions.