When comparing an organization's current performance to that of the prior year, an internal auditor found that: Total labor costs had increased. More overtime costs had been incurred. The total number of workers had increased. Net income was 10 percent lower. Based solely on this information, which of the following is a valid conclusion?
A) Net income per worker decreased.
B) Wage rates increased.
C) Worker efficiency decreased.
D) Total labor hours increased.

Question

Quizplus · Accepted Answer

The net income decreased by 10% while the number of workers increased, leading to a decrease in net income per worker.

When Comparing an Organization's Current Performance to That of the Prior