Gaia Wants to Establish a Web Site for Home

question 1

Multiple Choice

Gaia wants to establish a Web site for Home & Hearth, a retail business enterprise located in Iowa. To avoid suits against Home & Hearth in other states and foreign countries, Gaia's best option is to

• A) do nothing.
• B) make an effort to avoid breaking the law in those jurisdictions.
• C) post a disclaimer to limit sales to a certain geographic area.
• D) use technology that screens users from certain geographic areas.

---

Definitions:

Standard Costs

Predetermined costs for products or services, used as a benchmark for performance evaluation.

Direct Labor-Hours

Overall working hours expended by personnel directly engaged in the production of goods or delivery of services.

Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, reflecting efficiency in materials usage.

Direct Materials Purchases Variance

is the difference between the actual cost of direct materials purchased and the expected cost under standard costing.