Leeding Engines Inc

question 76

Multiple Choice

Leeding Engines Inc.specializes in manufacturing internal combustion engines.Recently,Leeding has decided to create a division for the flexible fuel field.During this time,Mark,the HR manager,has been reviewing and updating job descriptions.With the knowledge that a new division of jobs will be created,what would be the appropriate course of action for Mark to take next?

• A) Mark should amend the original job descriptions to say they all will eventually take on flexible fuel responsibilities.
• B) Mark should take care to avoid including the titles of the jobs while formulating new job descriptions.
• C) Mark should wait until the new employees are hired before creating the new job descriptions.
• D) Mark should consider preparing new job descriptions since new jobs will be created in the organization.
• E) Mark should reuse the old job descriptions for the new jobs,instead of creating new ones.

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Definitions:

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production.

Variable Costing

An accounting method that considers only variable production costs (costs that change with the level of output) in the calculation of product costs.

Unit Product Cost

The total cost associated with producing one unit of a product, including both variable and fixed costs.

Variable Costing

An accounting method that includes only variable production costs (direct labor, direct materials, and variable manufacturing overhead) in product costs.