A New Factory Manager Was Hired for a Company That

question 50

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) unfavorable direct labor efficiency variance
• D) unfavorable direct labor cost variance

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Categorization accentuates perceived similarities within and differences between groups on dimensions that people believe are correlated with the categorization. The effect is amplified where the categorization and/or dimension has subjective importance, relevance, or value.

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