A New Factory Manager Was Hired for a Company That

question 18

Multiple Choice

A new factory manager was hired for a company that was experiencing slow production rates and lower production volumes than demanded by management.Upon investigation,the manager found that the workers were poorly motivated and not closely supervised.Midway through the quarter,an incentive program was initiated,and cash bonuses were given when workers hit their production targets.Within a short time,production output increased,but the bonuses had to be charged to the direct labor budget.This could produce a(n) ________.

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

Understand and identify non-cash investing and financing transactions.

Distinguish between cash flow sections (operating, investing, financing) for various transactions.

Prepare a cash flow statement using the direct method and reconcile net income with net cash flows from operating activities.

Understand specific IFRS guidelines for cash flow statement preparation.

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Definitions:

Trespass

An unauthorized intrusion or entering onto someone else's property which infringes on the right of the owner.

Tort

A civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act.

Tortfeasor

One who commits a tort.

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the act.