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NEW QUESTION 38
For a manufacturing company what is the most Important advantage of using variable costing rather than absorption costing?

• A. Variable costing measures the cost of all manufacturing resources, whether variable or fixed and thus provides the most complete cost.
• B. Variable costing includes only variable direct and indirect costs in inventory which makes it more useful for short-term decision making and performance evaluation.
• C. Variable costing is the required inventory method for external reporting in most countries and therefore is less costly to implement
• D. Variable costing is cost-effective and Jess confusing to managers and is therefore more useful in performance evaluation.

Answer: B

NEW QUESTION 39
identity and explain one benefit and one limitation of outsourcing most of me payroll-related work to an outside payroll service provider.
Essay
Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (¥ in millions).

ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.

Answer:

Explanation:
See the Answer below in Explanation details.
Explanation
One of ihe advantage of the outsourcing is that the company management would have enough time to focus on its key strategic issues rather that payroll processing The downside of the outsourcing is confidentiality issue which might arise as key information about payroll would he shared with the outsource service provider.

NEW QUESTION 40
The manager in charge of the disaster recovery plan for a company has ensured that there is off-site storage of key data programs, operating systems and documentation. Which one of the following is the best next step to be prepared for a disaster?

• A. She should enter into reciprocal agreements with alternative ''hot'' sites.
• B. She should make sure that everyone Knows the location of offsite data storage.
• C. She should create a planning document including a list of critical applications.
• D. She should ensure that the "cold" sites are fully equipped and ready.

Answer: B

NEW QUESTION 41
A company's return on investment will increase it expenses decrease by $100 and

• A. net profit remains unchanged
• B. net profit decreases by $100
• C. total assets remain unchanged
• D. sales decrease by $100

Answer: C

NEW QUESTION 42
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