Brown,at Age 45,was Hired as the General Manager of the CountrySide

question 73

True/False

Brown,at age 45,was hired as the general manager of the CountrySide Shipping Company by Carrothers,the company president.The initial contract of employment was for a three-year term,and was embodied in an exchange of letters between Brown and Carrothers in 1992.At the end of the three-year term,Brown continued on as general manager,receiving annual increases in salary,executive profit sharing,pension contributions,and discretionary bonuses,if business was exceptionally good in a given year.In January 2004,for no apparent reason,Carrothers called Brown into his office and told him his services were no longer required.Carrothers offered Brown a week's salary as "severance pay." At the time of termination,Brown was earning a salary of $70,000 per year,received company-paid pension contributions of $5,000 annually,and,in 2003 had received $3,000 from profits shared,and a $5,000 bonus.
-The type of action that Brown might bring against the company would be for wrongful dismissal.

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Definitions:

Actual Results

The real financial or operational outputs of a business, as opposed to projections or estimates.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead allocated, based on activity level.

Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.

Variable Manufacturing Overhead

Costs that vary with the level of production output and include expenses such as indirect materials, supplies, and utilities used in manufacturing.