In the Coen Brothers' Movie the Hudsucker Proxy the Board

question 72

Multiple Choice

In the Coen Brothers' movie The Hudsucker Proxy the board of directors picks someone to run the company who they believe will make poor decisions.If things turn out as they plan,

• A)the price of a share of stock in the Hudsucker corporation should decline as the demand for shares falls.
• B)the price of a share of stock in the Hudsucker corporation should rise as the demand for shares rises.
• C)the price of a share of stock in the Hudsucker corporation should decline as the supply of existing shares falls.
• D)the price of a share of stock in the Hudsucker corporation should rise as the supply of existing shares rises.

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Definitions:

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials used.

April

The fourth month of the year in the Gregorian calendar.

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the hours worked and the standard variable overhead for the same activity level.

July

The month that is positioned seventh in the Gregorian calendar year.