The two characteristics of the waiting line itself are whether its length is limited or unlimited and the discipline of the people or items in it

The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to

the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce a(n) ________. A) unfavorable direct materials cost variance B) favorable direct labor cost variance C) favorable direct labor efficiency variance D) unfavorable direct materials efficiency variance

Archibald surrenders a life insurance policy and receives a lump-sum cash payment of $32,000. His premium payments up to the time of surrender amounted to $26,000. How is the surrender treated for tax purposes?

A) Archibald will receive $6,000 tax-free and will be taxed on his $26,000 cost basis. B) The full $32,000 is received tax-free. C) The full $32,000 is taxable as ordinary income. D) Archibald will receive his $26,000 cost basis tax-free and will be taxed on $6,000.