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

question 171

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 would have produced a(n) :

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

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Definitions:

Reflexive Communication

The exchange of nonverbal cues that convey feelings and reactions without the need for words.

Child-Directed Speech

A simplified and higher-pitched style of language that adults use when talking to young children, believed to facilitate language acquisition.

High Pitch

Sounds that are high in frequency, often described as sharp or squeaky, opposite to low pitch or bass sounds.

Simple Vocabulary

The basic and easy-to-understand words or terms that are often among the first learned by children or non-native speakers.