Freiling Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows: During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 14,890 hours at an average cost of $22.80 per hour.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by:

A) $318,780
B) ($339,492)
C) $339,492
D) ($318,780)

The management of Jeremynt Inc., a public relations firm, gives each of its teams the responsibility of increasing their productivity through measures developed by the team members and approved by the respective team managers. The company then measures the team-level productivity, and the cost savings resulting from the improvements in productivity are split among its employees. In this scenario, Jeremynt Inc. is most likely using a group incentive system called _____.

A) profit sharing
B) a fixed incentive plan
C) a sales commission
D) gainsharing

Information that is common knowledge requires no documentation.

Knowledge management includes _____.

A) explicit knowledge.
B) tactic knowledge.
C) enabling technologies.
D) all of these.

According to the rational expectations theory the rate of inflation largely depends on

A) business expectations of interest rate levels.
B) business expectations about international trade.
C) what people expect to happen to prices.
D) the unemployment rate.

An indenture is a debt agreement.