Orion Is a Business Software Firm Based in Atlanta That

question 101

Multiple Choice

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule.
-All of the following questions are relevant to Orion's decision to add a cafeteria plan EXCEPT ________.

• A) How satisfied are Orion's employees with the current benefits plan?
• B) What benefits are available to employees at Orion's main competitors?
• C) What costs would Orion incur for switching to a cafeteria benefits plan?
• D) How would a cafeteria plan alter Orion employees' Social Security benefits?
• E) What effect would a cafeteria plan have on the coverage that Orion employees receive?

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of goods.

Indirect Materials

Materials used in the production process, but not directly traceable to a finished product, like lubricants and cleaning supplies for machine maintenance.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, such as factory rent, utilities, and maintenance.

Indirect Materials

Materials used in the production process that are not directly traceable to individual products, like lubricants and cleaning supplies.