Answer:
The correct option is a. $7.50.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answer is now provided as follows:
Activity-based costing is a costing system that involves identifying an organization's activities and assigning the cost of each activity to all products and services based on actual consumption.
Based on the data in the question, a haircut requires one units each of Hair Washing and Conditioning, while it requires zero unit of each of Chemical Treatment and Styling.
Therefore, we have:
Cost of services for a haircut = (Units of Hair Washing * Rate of Hair Washing) + (Units of Conditioning * Rate of Conditioning) = (1 * $4.00) + (1 $3.50) = $4.00 + $3.50 = $7.50
Therefore, the correct option is a. $7.50.
Answer:
<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>
Savings are considered leakages in the economy because the represent money that is not spent but rather saved.
<em>Which of the following will occur as a result of this change?</em>
<em>GDP rises above planned spending.</em>
Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.
Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>
Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.
Answer:
Supplier's quotation (2,400 x $6.25) 150,000
Less: Relevant cost of production:
Direct material (2,400 x $31) 74,400
Direct labour (2,400 x $18) 43,200
Variable overhead (2,400 x $9) <u>21,600</u> <u>139,200</u>
Savings <u> 10,800</u>
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
Answer:
a. unethical
Explanation:
This company's behavior is unethical. In the globalized world, it is natural for transnational firms to direct their production structure to countries where labor is cheaper, as this makes their product more competitive in the international market. However, these firms must not take advantage of regulatory failures in the labor market in these countries to increase their profit. Every firm must be concerned and ensure that the physical integrity and health of employees who work on its plants is preserved, regardless of location. Thus, in order to act ethically, this firm should implement process improvements to minimize the exposure of employees to chemical agents and to inhibit the exploitation of the labor that occurs when employees work in excess and without being paid for overtime.
Ethically probably harder,
