At the End of 2014, Diatomic Company Implemented a New

question 155

Multiple Choice

At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows:

• A) 2.50
• B) 3.20
• C) 1.00
• D) 1.25

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Definitions:

Operations

The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Salaries Payable

A liability account that records the amounts owed to employees for work performed but not yet paid.

Social Security Tax

A mandatory contribution paid by employees and employers to fund the social security program, providing benefits for retirement, disability, and survivors.

Payroll of Scotland Company

The total amount of wages and salaries paid by Scotland Company to its employees.