In Learning from Experience: How Did Allison Watkins, Director of Brand

question 44

Multiple Choice

In Learning from Experience: How did Allison Watkins, director of brand partnerships for the Lance Armstrong Foundation, respond when Armstrong personally apologized to the charity for his doping scandal?

• A) She became angry and asked him to leave.
• B) She cried because her career was ruined.
• C) She applauded him for his courage.
• D) She was skeptical and wondered if he was being sincere.

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Definitions:

Direct Material

Primary materials used in the making of a product that can be directly traced to the finished good.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, multiplied by the quantity of materials.

Labor Efficiency Variance

A measure used to assess the difference between the actual hours worked and the standard hours allotted to complete a task, multiplied by the standard hourly labor rate.

Variable Overhead

Refers to the indirect costs of operation that fluctuate with the level of production activity, such as utilities for manufacturing facilities.