Which of the Following Is a Potential Consequence of Incorrect

question 74

Multiple Choice

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (You may select more than one answer. )

• A)Federal penalties for not remitting all taxes due
• B)Erosion of available cash because of overpayments to employees
• C)Increased stakeholder approval due to employee overpayments
• D)An increase in legal proceedings initiated by employees

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Definitions:

Direct Materials Quantity Variance

The difference between the actual amount of direct materials used in production and the standard amount expected to be used, valued at the standard cost.

Overhead

Ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.

Standard Labor Hours

The predetermined amount of time expected to complete a task or produce a unit of goods under normal conditions.

Manufacturing Cost Variance

The difference between the actual manufacturing costs and the standard or budgeted costs.