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What were some of the principal reasons why the FCC approved the mergers of SBC Communications, Inc. with AT&T Corp. and Verizon Communications Inc. with MCI, Inc. Answer

What were some of the principal reasons why the FCC approved the mergers of SBC Communications, Inc. with AT&T Corp. and Verizon Communications Inc. with MCI, Inc.? 

According to me i think FCC should have stopped the merger because it doesn’t serve public interest as they claim to, this is because i see a situation where it might become a monopoly by using gains or profit from outside to undermine productive competition. Lets take for example costs of making international calls going to Japan from US might drop drastically for sprint customers but might not be the same to other companies like AT&T, T-Mobile.

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How does health insurance differ from other kinds of insurance? What are the similarities and differences between them Answer

Let’s consider the general concept of insurance. How does health insurance differ from other kinds of insurance? What are the similarities and differences between them?

Next, let’s consider some of the issues that employers face in providing health insurance to their employees. Why has the cost of employer-sponsored health plans increased significantly over the last 5 years?

Private healthcare is funded predominantly through indemnity insurance plans such as Blue Cross Blue Shield, Aetna, and United Healthcare. The public financing of healthcare is accomplished through the Medicare and Medicaid programs. We will examine the complex reimbursement methodologies adopted by public and private payers. We’ll also look at the incentives that are inherent in each methodology and assess how these incentives may impact the operations of payers, providers, and employers. Once the payment methodologies have been identified, we’ll consider what is working and what is not working in terms of provider reimbursement and the challenges faced by employers in providing health insurance. We’ll also look at the triad of care – access, cost, and quality – to assess how reimbursement strategies drive each of these dimensions. The more we learn about the U.S. healthcare system, the more complex it becomes. Our current payment methodologies are very complicated and demonstrate another justification why healthcare reform is so important for the U.S.

Healthcare has become so expensive and the economy crashed in 2009. All employer paid benefits has risen for all employees during this time since most employers can’t afford to take on the burden of paying for full healthcare coverage for an entire family. Some offer different levels of paid benefits, if it is single the company will pay the cost per month and the employee will pay deductibles and co-pays along with co-insurance. If they want to add their family there are different levels of monthly payments coming from the employee along with deductibles, copays and co-insurance. The payment system is complicated and cumbersome for most people to even understand if they are not in involved in healthcare. Or even if they are involved in healthcare all the different payment systems are fragmented.

Why has the cost of employer-sponsored health plans increased significantly over the last 5 years?

First, dominant insurers are rolling over and paying powerful hospitals the rates they demand to be paid, which increase each year because they know that patients do not pay for their own healthcare directly and have no idea what their employer is paying for healthcare.

Second, is the lack of preventive care. Patients will subtle illness either fear going to the doctor for care, or do not want to pay the cost to see the doctor or they just simply do not have the coverage to pay to see a doctor and so they wait. Often times they wait until things get worse and they have no other choice but to go see a doctor, and by this time their treatment is long term and costly.


The compelling solution: reform the employer tax exclusion

The solution to this problem is, from a policy standpoint, simple: equalize the tax treatment of individually-purchased and employer-sponsored health insurance. If more people bought insurance for themselves, more people would understand the tradeoffs between higher prices and access to brand-name hospitals. Those “must-have” hospitals, in turn, would be more reluctant to exploit their market power to raise insurance premiums. And insurers would, in turn, have more ability to walk away from pricey hospitals, instead of rolling over and passing those costs onto their policyholders.


From a health insurance perspective, what is the insurance risk and who bears the risk?   How do insurance premiums reflect this risk?

“The insurer assesses, as accurately as possible, the risk it will bear for covering an individual or a group against specified types and extents of losses (the risk assessment function of insurance)” (Barton, 2009 p. 110). Insurance companies establish the amount of risk they take on in two ways: underwriting process and experience rating. In the underwriting process, actuaries evaluate the possibilities of events happening to whatever is being insured (health, cars, property, etc) and modify as needed. Experience rating utilizes prior claims to predict the likeliness of future claims. Auto insurances utilize experience rating when they evaluate how many traffic violations you as a driver have. A violation will usually cause an increase in your premium.

Barton, P. L. (2009). Understanding the U.S. health service system. (4th ed.). Chicago, IL: Health Administration Press.

An actuary is someone who looks at the data for a population and determines their potential utilization of services which will determine insurance premiums.   What are some characteristics of a population which may drive up health insurance premiums?







An article in the New York Times in the Money & Policy section states that one reason premiums are on the rise is because of the new federal law. Actually, we are paying more for a lot less. It also stated that next year there we be competition among the carriers which will lower the premuims. The name of the article I found online is As Health Costs Soar, G.O.P. and Insurers Differ On Cause. A second reason why premiums are on the rise is because health insurance is very expensive which makes health care expensive. The last reason is the new law ObamaCare. There are many people out there believe this is the main reason.   This law does not prevent premiums from rising. I found out about this information on Reason. com. The name of the article is “Is ObamaCare causing Health Insurance Premiums To Rise?

Characteristics of a population that drive up health insurance premiums are:

1)   People who smoke cigarettes/cigars/pipes, etc.

2)   Overweight or Obese (BMI)

3)   High Blood Pressure

4)   Heart Conditions

5)   Cancer – active, remission, survivor, etc.

6)   Insurance fraud – prior, current, etc.

7)   High cholesterol

8)   Working in highly stressful or dangerous environments

9)   Depression or history of mental illness

10)   Post Traumatic Stress Syndrome (PTSD) from military service or abuse (domestic, sexual, mental, etc.)

Chronic health conditions greatly impact the health insurance premiums. “Nearly half the U.S. population has one or more chronic conditions, among them asthma, heart disease or diabetes, which drive up costs. And two-thirds of adults are either overweight or obese, which can also lead to chronic illness and additional medical spending”.

Some other factors that drive up our health care costs include:

  1. We pay our doctors, hospitals and other medical providers in ways that reward doing more, rather than being efficient.
  2. We’re growing older, sicker and fatter.
  3. We want new drugs, technologies, services and procedures.
  4. We get tax breaks on buying health insurance — and the cost to patients of seeking care is often low.
  5. We don’t have enough information to make decisions on which medical care is best for us.
  6. Our hospitals and other providers are increasingly gaining market share and are better able to demand higher prices.
  7. We have supply and demand problems, and legal issues that complicate efforts to slow spending.

Insurance risk means that there is a possibility that the cost of treating the patient will be higher that the premiums that the patient pays. So the insurance company bears the risk that they will reimburse the hospital for more money than they expected. Insurance premiums can reflect this risk when the healthier people pay less premiums, while those who are unhealthy or engage in riskier activities like smoking cigarettes pay higher premiums.

Do you support the idea that that smokers should pay more for their health insurance as compared to non-smokers? How about individuals who exceed a specific body max index (BMI)?

I would not support the idea of higher premiums for smokers or overweight individuals. It seems as though this will be hard to regulate, especially for families were there is one individual in the family that smokes or is overweight. It wouldn’t be fair to charge the entire family at a higher rate for the behaviors of one individual. I do believe that smokers should pay more for their insurance, because there are so many programs and pills to support a person to quit smoking. Smoking also affects those around you more than obesity does. When a person is fat, it only effects how they themselves breathe, look, feel, health, etc. When a person smokes, their habit affects the air that others breathe. It also has been stated several times that 2nd hand smoke is worse than first hand. I have never understood how this could be true and still to this day, don’t really know if it is true; however, I know that smoking has an effect on others besides yourself and therefore, for the good of the masses, we should do all that we can to help people stop smoking.

I wouldn’t necessarily agree with smokers paying more for their health insurance because there are other things that people do that harm their bodies such as alcohol or drugs. Just because they smoke doesn’t mean that they will have health issues. They can pay the same premium but if they are required to have more doctor visits, then they will pay the difference.


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Supply base rationalism seeks to reduce the suppliers in which an organization deals directly Answer

Supply base rationalism seeks to reduce the suppliers in which an organization deals directly to a smaller number of strategic suppliers. How does this process work? What are the benefits to each of the players in this relationship? Document your sources. Respond to at least two of your fellow classmates’ postings.


Harrison & van Hoek (2011) stated “paradoxically, the first step to managing the supply base for value through relationships is to get rid of the majority of suppliers.  The rationale for this action is the inability of a focal firm to allocate development resources to suppliers when there are simply too many of them” (p. 314).  Wheatley (1998) stated “vendor reduction brings two immediate benefits.  Typically prices improve as vendors fight to retain business.  And suppliers’ quality and delivery performance improve as a focus on things such as delivery performance or quality forces vendors to shape up – or find themselves de-listed” (para. 6).  The first step of the process is to thoroughly understanding your customer’s critical-to-success (CTQ) factors.  The best way to complete this step is to utilize the Six Sigma approach of first gathering voice-of-the-customer (VOC) and translating this information into the actual CTQs.  This step help develop the supply chain strategy.

The second step is aligning the internal organization to those CTQs.  Harrison & van Hoek (2011) stated “without that it will be hard to know exactly what to buy and what opportunities in the supply market are most valid to consider” (p. 305).  Once the internal operation understands the CTQs and strategy, it will be much easier for the organization to develop metrics to determine which suppliers meet the partnership criteria.

Then, companies can reach past their four walls.  CIO Canada (2002) stated “the best performers have already linked their operation with those of their customers, suppliers, and logistics providers.  They know their own performance metrics, and those of all the partners in the supply chain.  They have visibility from the beginning to the end of their supply chain, and can make cost and volume adjustments before it’s too late” (para. 21).

Segmenting the supply base into categories such as bottleneck items, non-critical items, and leverage items can help organize suppliers within each category.  To rate each supplier, it is best to select a cross-functional team of stakeholders, establish the rating criteria, agree on the effective weighting for each criteria, and score each supplier’s performance.  Typical criteria used to rank suppliers include quality, responsiveness, discipline, delivery, financial, management, technical capability, and facility.  Based on my direct experience on this subject, it might be very important to add a category that rates each suppliers’ continuous improvement level and ability to work together to create joint product designs.


CIO Canada, 10(12), 0.  (2002).  Five steps to better supply chain value. Retrieved from

Harrison, A. & van Hoek, R. (2011). Logistics management and strategy: Competing through the supply chain (4th ed).  London, England: Prentice Hall Financial Times. ISBN: 978-0-273-73022-4

Wheatley, M. (1998). Seven secrets of effective supply chains. Management Today, , 78-86. Retrieved from


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HCS 449 Week 3 Individual Personal Action Plan

Personal Action Plan


An action plan is a detailed, step-by-step plan for accomplishing an identified goal. Complete your personal action plan by answering the questions below. Refer to the program outcomes as a guide while answering your questions.


Program Outcomes


  1. Graduates will be able to identify the structure and role of delivery systems within the health care industry.
  2. Graduates will be able to examine the components of management and leadership within health care organizations.
  3. Graduates will be able to analyze the utilization and application of technology within a health care organization.
  4. Graduates will be able to examine the application of risk and quality management concepts in the health care industry.
  5. Graduates will be able to examine the impact of legal and regulatory requirements on the delivery of health care.
  6. Graduates will be able to explore financial and economic issues in the health care industry.

Part I

A personal action plan is a plan you develop to meet personal goals. Instead of focusing on a career goal, consider the personal goals that might help you eventually meet your career goal, or think of goals you want to accomplish for personal satisfaction. These often relate to education or professional development, aside from the focus of your chosen career. In developing a personal action plan, you will look at your personal strengths and weaknesses and your ability to think strategically, and you will identify the goals you want to achieve. Answer the following questions to help you prepare for your action plan.

Based on the program outcomes listed above, your program reflection from Week Two, and your program questionnaire from Week One, what would you identify as your greatest strengths?

One of my greatest strength is being social and very easy to get along with that is my strength I would say as a person. The reason why I would state this is because everyone that I have known or barley new told me out of everyone they have met I was the easiest and the most understanding person they have met. I like to listen to people and give good eye contact when they are talking some people tend to just move around and do different kinds of things when people are talking I stay focused on the person and listen.

Based on the program outcomes listed above, your program reflection from Week Two, and your program questionnaire from Week One, what would you identify as areas you need to improve?

One of things I should focus on is communicating and also not being shy when it comes to presentation and stuff around all of people that is what I think I need to improve because then I tend to start sweating and getting all nervous. My teachers always told me and also my mentors told me never to let them see you sweat it just the way it goes even when you are trying to be a seller of any kind you never want to see you sweat.

How do you feel you have accomplished the ability to strategize and critically think during the course of your program?

I have accomplished a lot in this time of my education I have learned many different kinds of things like learning about floor plans and managements techniques in this class. Which I think is very helpful when it comes to my work I tend to deal with a lot of people and help whatever I can and also dealing with robots so have to make sure I do understand what is going on around and also the people if they need any kind of help I would be there to give that kind of care. I also learned how to strategize the time with my education and also my work so that I don’t get caught up in school and work so I learned how to deal with the time and also work.

How have your ethical and personal perspectives evolved since you started this program?

I have learned a lot of different kinds of things from this program the way different kinds of people different kinds of things and also the way they think we are all different and we all do things a certain way this is the way we learn and how to do things better and understand the different kinds of cultures and the way we do things. Ever since I been in this education I have learned many different kinds of ways that I have learned from my classmates and the way they do things which was very interesting and amazing the way they were doing things in this education.

Based on your answers above, identify at least three areas where you can improve by setting a personal goal. Use these areas to create your goals in Part II of this worksheet.

Communication, Presentations, being shy are the three things that I need to improve on and the way to do things is to make sure that I can set goals to make sure that I can do them.
Part II

Generate your action plan by completing the table below. Identify at least three goals you would like to meet with this action plan. Research action plans on the Internet for help in completing this table.


  Goal How will I accomplish this goal? Who needs to be involved? When will it be done? What resources are needed? What obstacles may arise? How will I overcome these obstacles?
Example Goal I want to better understand the role technology will play in the future of health care. I will read trade journals and magazines and talk to people in different positions in health care. Myself and those I interview. It will really be ongoing, but the initial phase should be done in 6 months, by June 15, 2011. I need to join some trade organizations in order to read their articles. I also need to find people in different health care careers to interview. People may not have an opinion or their opinions may differ from the trade journals. I might have a hard time finding journals or magazines. I think developing really detailed questions and being consistent will help. Also, I might have to contact trade organizations to ask for help.
Goal 1




I want to understand more about communication. To learn and understand more about people and the communication Myself and also everyone that I can communication with. It would be nice to be done when I can communicate with people all better Any kind of resources that I can about communication There will be a lot of obstacles that will arise and I will be ready for whatever comes. Just don’t be shy and communicate with anyone that I can to understand more about communicating
Goal 2 Being Shy Just communication and being more open to people and just go out there Everyone needs to be involved that I can communicated with so that I can stop being shy When I get the fear of not being shy anymore Learning and understand the different kinds of ways to stop being shy. Fear of being shy and not understand Don’t be affarid
Goal 3 Presentations Don’t be scared and just go and do it People that I can presentation to. When I can presentation without sweating Watching people and learning different kinds of techniques People not understanding Go out there and just do it
Goal 4 vocabulary Learn more and also read a little more to learn more vocabulary. Books and people When I learn as much as I can know Books and reading Not understanding the words Learn and be reading a lot of books



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Describe the elements of PAC, and how does MRP impact these specific areas

How does the textbook describe the elements of PAC, and how does MRP impact these specific areas?

The textbox explains that for a JIT facility the job shop is no longer. There are no production area with high work in progress inventory, and long lead times. They are able to streamline the processes to job cells where the process is completed quickly with low work in progress inventory. “The shop-floor and vendor scheduling activities begin when an order is released. A critical information service provided by MRP is apprising the SFC systems of all changes in material plans. This means revising due dates and quantities for scheduled receipts so correct priorities can be maintained. ”

(Jacobs 276)

Jacobs, Berry, Whybark and Vollmann. Manufacturing Planning and Control for Supply Chain Management, 6th Edition. McGraw-Hill Learning Solutions, 2011. <vbk:0077609115#outline(11.1.2)>.

Which element of PAC (as described by the textbook and lecture) would be impacted the most by the material requirements plan?

The way how Aggregate Production Plan (APP) activities will or could affect Production Activity Control (PAC) is by the planning horizon. Because the aggregate production planning is concerning with demand forecasts into production and capacity level over a planning horizon, this can involve frequent changes in the size of the labor force or retaining a stable workforce that can leads in to inventory build ups during low demand period or idle time increase. While on the other hand, Production Activity Control (PAC) focus on scheduling and shop floor control activities.


The element of PAC as (described by the textbook and lecture) would impact the most by aggregate production plan is shop floor system, the reason is the “back end” approach takes into consideration all of the details of the company and considers the impacts specific details of a products will have on the operation. This will give the company to develop an individual plan that can be implement strategically.

I agree that the element of PAC that would be most impacted by the aggregate production plan would be the shop floor system. Shop floor control feedback is important for material and capacity planning, along with following up with vendors. Feedback can be given by status information like verification or disposition and/or by warning signals which flag certain parts that are in question. Shop floor planning should include elements of lead time, operational setbacks and lead time management. If any specific operation is not being performed it can setback the plan making anything that made it to the back end refer back to the engine stage of PAC.

Jacobs, Berry, Whybark and Vollmann. Manufacturing Planning and Control for Supply Chain Management, 6th Edition. McGraw-Hill Learning Solutions, 2011.

how does CRP impact these two sections of PAC?

The capacity plan is especially critical to managing the detailed shop-floor flow of materials. Capacity’s importance for shop-floor control (SFC) is illustrated by considering two extremes. If insufficient capacity is provided, no SFC system will be able to decrease backlogs, improve delivery performance, or improve output. On the other hand, if more than enough capacity exists to meet peak loads, almost any SFC system will achieve material flow objectives. Input/output analysis in the CRP system provides a method for monitoring the actual consumption of capacity during the execution of detailed material planning. It is linked to the shop floor execution systems, and supported by the database for production activity control (PAC). Input/output analysis indicate the need to update capacity plans as actual shop performance deviates from plans, as well as the need to modify the planning factors used in the capacity planning systems.

Reference: Textbook


The time comes when plans must be put into action. Production activity control (PAC) is responsible for executing the master production schedule and the material requirements plan. At the same time, it must make good use of labor and machines, minimize work-in-process inventory, and maintain customer service.

The material requirements plan authorizes PAC:

To release work orders to the shop for manufacturing.

To take control of work orders and make sure they are completed on time.

To be responsible for the immediate detailed planning of the flow of orders through manufacturing, carrying out the plan, and controlling the work as it progresses to completion.

To manage day-to-day activity and provide the necessary support.

which element of PAC (as described by the textbook and lecture) would be impacted the most by the business plan?

The choice of objectives for PAC and PAC design reflects the firm’s position vis-à-vis its competitors, customers, and vendors and is impacted by the business plan. It also reflects the company’s fundamental goals and the constraints under which it operates. Some firms have more complex products and/or process technologies than others. The result can be a difficult shop-floor management problem and a resultant difference in the appropriate PAC system. As a result PAC system design must be tailored to the particular firm’s needs and business plan based on the SWOT analysis of the firm.

The element of PAC that would be impacted the most by the capacity plan is the shop floor systems. The shop floor systems determine scheduling of production. Capacity planning determines the capacity needed to meet changing demand. Poor capacity planning will lead to production schedules being ineffective.

I agree that the capacity plan plays an important part in PAC and it’s connection to MRP systems. Having a detailed capacity plan is vital when managing shop floor materials. Knowing the capacity is knowing what resources are available in order to meet material plans. If the capacity is not correct then the system delays delivery and output as well as increase backlogs. Now if you have enough capacity then it allows for a consistent flow with effective utilization. The goal is to create an even flow instead of the up and down or as the book says peaks and valleys.

Jacobs, Berry, Whybark and Vollmann. Manufacturing Planning and Control for Supply Chain Management, 6th Edition. McGraw-Hill Learning Solutions, 2011.

how important is lead time management in a PAC system?

Lead time includes the time needed to ship the parts from the supplier. The shipping time is included because the manufacturing company needs to know when the parts will be available for material requirements planning.

Lead time is important so that inventory can be minimized and shortages will be less prevalent. If the system maintains positive lead times, production will run smoothly, orders will be fulfilled on time and shipping time will not be an issue. When there is little or no lead time, quality will lack because people will be rushed, items will have to be taken from inventory which may deplete it completely and shipping could become an issue on the far back end of the spectrum.

Lead time is the element needed in order to be able to plan when material is needed for the production demand. There is lead time for out sourced suppliers to procure material to be introduced into production. This is important to the PAC system in that these lead times has to be taken into consideration when planning the order releases, shop floor schedules, purchasing, and vendor scheduling. You can’t promise a customer that you’ll have their product available for them next week when it takes 2 weeks to get the components from your supplier to even make the product. So lead times are very important when it comes to PAC.

Lead time management in a PAC system is very important, the reason for that is part of a PAC system responsibility is execution on scheduling and to review planned orders which is material availability. With short lead time the PAC system have a better control on job orders and work centers. Longer lead time will leads to more jobs in the system , that leads to longer queue, idle time, and more work-in-process inventory.

which specific area of PAC (as described by the textbook and lecture) is impacted the most by lead time management?

10:20 PM

Well, I would think the shop floor is most affected because if we do not receive materials in time our work schedule would be thrown off so we would not be able to start jobs on the shop floor when we planned our book discusses in chapter 8 an “operation setback chart” (Jacobs 279) where we can see how delayed lead times can impact PAC. So that would be the shop floor and the MPS that are greatly affected by lead times. Long lead times, as Archibald mentioned affect work in process inventories which affect our costs.

Jacobs,   Berry, Whybark and Vollmann. Manufacturing Planning and Control for Supply Chain Management, 6th Edition. McGraw-Hill Learning Solutions, 2011. <vbk:0077609115#outline(11.2.1)>.

I would have to say that MRP (material resource planning) would be impacted the most by lead time. MRP plans according to supplier lead time, transportation time, internal distribution time, along with other entities such as process time and material acquisition time. MRP is the main system that takes lead times into consideration when planning for material demand.

The lead time is the duration between placing an order until receiving the order. The time it takes a company to unload a product from a truck, inspect it, and move it into storage is non-trivial. With tight manufacturing constraints or when a company is using Just-In-Time manufacturing it is important for supply chain to know how long their own internal processes take.

So how do you think this will specifically affect each element of PAC?

Lead times impacts every element of PAC because every process requires time to process. For instance, when material is delivered to the plant, there in internal distribution time in which the material will be available for the production line. There is material acquisition time that the supplier needs in order to purchase material to procure. There’s transit time given for the amount of time it takes a supplier to ship and deliver to the facility.

It can actually grow far more complicated than this. Lead time is highly variable in a real world setting. Just one situation in which it changes dramatically is when a quality problem arises and an order needs to be replaced. An unexpected demand that needs to be met very urgently takes materials and production capacity earmarked for other orders. This means that the customer service rep needs to be able to quickly provide a lead time for the replacement order (which better be accurate since you’re dealing with an already agitated customer). This can then affect the lead time of all other open orders. Both aspects of PAC, the supplier systems and shop-floor systems, need to be involved in the replacement.

how important is lead time to a PAC system?

There are four elements of lead time and they are run, setup, move, and queue. With good Pac design and practice move and queue can be greatly reduced. Lead time is important because the longer the lead time between order and starting the more orders in the shop. The more orders there equal longer queue time.

The importance of lead time management in PAC system can not be understated. The time to deliver products from either the manufacturer or even one are of the operation to another needs to be monitored and managed to ensure that end products comply with delivery times. Understanding lead time is one of the major processes that allow suppliers as well as manufactures the ability to accurately determine when their products can reach the market.

which element of PAC is impacted the most by lead time?

All these areas in OPC: (1) the business plan, (2) the aggregate production plan, (3) the master production schedule, (4) material resource planning (MRP)/capacity resource planning [CRP]), and (5) production activity control (PAC) play vital role in with OPC, where each of these area are important. Each level varies it purpose, time span ( planning horizon), level of detail,. and planning cycles(frequency). At each one of these levels, there questions must be answers. For instance, what are the priorities, what is the available capacity, and how difference between priorities and capacity be resolved. The business plan is when senior management set major goals and objectives for further planning by marketing, finance, engineering and etc. The aggregate production plan is the quantities of each product group that must be produce in each period, desired inventory levels, and the resource of equipment, labor and materials needed in each period. The master production schedule is to break down the production plan to show for each period, the quality of each end item to be made. Material resource planning is when the component and service are needed to make each end item. Production activity control represents the implementation and control phase that require the responsible for planning and controlling the flow of work through the factory.

How does the textbook describe the core elements of PAC? And which one is impacted the most by the other four areas of OPC? Why do you say so?

The core elements of PAC are that MPS and MRP along with shop data, product data, performance and procurement all directly affect PAC. This in turn affects order release, shop floor scheduling, vendor scheduling, feedback, and order closing. – Detailed scheduling and control of jobs at work centers -reduction in work in process inventories and lead times -feedback from PAC can provide warnings to make changes – effective PAC results in good customer service.

In my opinion PAC is related to each of the five areas of OPC which are the business plan, aggregate production plan, master production schedule, master production schedule, MRP/CRP and last but not least production activity control (PAC). PAC is like the coordinator of manufacturing scheduling and controlling resources related to production of orders and tracking. It takes a plan and implements it to retrieve and achieve results in steps. The roles of PAC are to manage shop floor productions, work flow, scheduling and control work flow. For example im a factory and we make train whistles I would use the information from my MRP system to decide which products I plan to make, how many, scheduling, materials needed (BOM) and even total of jobs or orders completed and placed.

Activities in capacity resource planning (CRP) can have a significant impact on PAC. The most obvious of which is how much of the product is immediately available for use over a period of time. Another significant impact CRP can have on PAC is how the product is able to flow through a system. If capacity is calculated too low for demand then a system will see constant shortages and downtime. If the capacity is calculated too high then the system will have used more space than necessary which could result in increases in travel throughout the system.

What do you think are the three major prerequisites to an effective PAC system?

If I am reading into the hints appropriately, the engine is what feeds PAC. You mentioned the PAC is the back end of the OPC or MPC, which is made up of the front end, engine and back end (the sections of MPC). The engine, according to Fig 8-1 in the text, is made up of three elements; “detailed materials planning, detailed capacity planning and materials and capacity plans.” (Jacobs, 2011)

Having looked at Fig 8-1 in the text, I would argue that to make up an effective PAC, you need an accurate master production schedule, detailed materials and capacity plans and effective follow up that may improve the plans that are now in place. I say this because the master schedule feeds the materials and capacity planning which feeds the PAC. Having effective follow up that will improve the plans in place will only help the PAC be more effective time after time.


Jacobs, R. (2011). Manufacturing Planning and Control for Supply Chain Management (6th ed). McGraw-Hill Learning Solutions.

Retrieved from

The prerequisites to an effective PAC system is the three sections of the engine of MPC.

Three major prerequistes to an effective PAC system are master production schedule MPS, material requirement planning (MRP, and capacity requirement planning (CRP). All these system play a effective role in the PAC system, because MPS shows when products will be availables to PAC system, the material requirement planning ensure the availability of materials, components, and products for planned production and for customer delivery, and capacity requirement planning shows the requirements that need to meet production requirements.


an operations planning control (OPC) system contains five main elements:

* The business plan

* The aggregate production plan

* The master production schedule

* Material Resource Planning (MRP) / Capacity Resource Planning (CRP)

* Production Activity Control (PAC)

We also know that a Manufacturing, Planning, and Control (MPC) systems contains a Front End, Engine, and Back End that encompasses key elements of OPC.


With that being said, let’s end this week with a discussion on JIT. How is a JIT strategy and its principles directed toward a PAC system?

JIT strategy and it principles directed toward a PAC system with reductions in raw material, WIP, finished inventory, reduce space needed for WIP and inventory, setup time reductions and improved cycle rate. It also improve machine and employee productivity. Utilizing JIT principle is a low risk and high reward proposition.

JIT does not focus on capacity like MRP does. With JIT the capacity does not have to be defined because the main principles of JIT are to get products in and get them out. With JIT, there is much waste reduced, costs are reduced, and there isn’t a need for scheduling. All this in turn allows for a smoother PAC if all works as it should.

JIT systems are designed to produce products on an order to order basis, produce them and ship them our the door. It is not inventory driven and is often times even used to reduce inventory. In most cases it is more economical when using the PAC system. JIT is most effective when the same types of products are being produced frequently rather than new and ever changing production. An MRP system would be more effective for that type of business.

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Douglas Margreiter was severely injured in New Orleans on the night of April 6, 1976 Answer

Douglas Margreiter was severely injured in New Orleans on the night of April 6, 1976. He was the chief of the pharmacy section of the Colorado Department of Social Services and was in New Orleans to attend the annual meeting of the American Pharmaceutical Association. On Tuesday evening, April 6, Mr. Margreiter had dinner at the Royal Sonesta Hotel with two associates from Colorado who were attending the meeting and were staying in rooms adjacent to Mr. Margreiter’s in the New Hotel Monteleone. Mr. Margreiter returned to his room between 10:30 p.m. and 11:00 p.m.; one of his friends returned to his adjoining room at the same time. Another friend was to come by Mr. Margreiter’s room later to discuss what sessions of the meetings each would attend the next day.

About three hours later, Mr. Margreiter was found severely beaten and unconscious in a parking lot three blocks from the Monteleone. The police who found him said they thought he was highly intoxicated, and they took him to Charity Hospital. His friends later had him moved to the Hotel Dieu.

Mr. Margreiter said two men had unlocked his hotel room door and entered his room. He was beaten about the head and shoulders and had only the recollection of being carried to a dark alley. He required a craniotomy and other medical treatment and suffered permanent effects from the incident.

Mr. Margreiter sued the hotel on grounds that the hotel was negligent in not controlling access to elevators and hence to the guests’ rooms. The hotel says Mr. Margreiter was intoxicated and met his fate outside the hotel. Is the hotel liable? [Margreiter v. New Hotel Monteleone 640 F.2d 508 (5th Gr. 1981)]


  1. What are the elements of negligence that Mr. Margreiter will need to prove against the hotel in order to win his case? List the five elements here. (Points : 5)

Ans: The five elements of negligence that Mr. Margreiter would need to prove are:

– Defendant or the hotel has a duty to exercise “reasonable care” for the safety and security of their guests.

– Hotel has a general duty to reasonably protect guests from harm caused by other guests or non-guests.

– Hotel has a duty to make the premises reasonably safe for their guests. Hotel had a keying system for the hotel rooms that were inadequate.

– Hotel Defendant actually breached his duty in some way.

– The Defendant’s breach caused harm to the plaintiff and the harm was actually done as a result of the negligence.

  1. Applying the facts you have from the case problem above only, lay out a case for negligence against the hotel. Use the elements to outline the case. Start with the first element, explain what facts you have for or against that element, and then continue through the five elements of negligence. If you do not have enough facts to make your case, explain what facts you would need to have in order to support a case of negligence. (Points : 10)

Ans: 1) Hotel has to exercise “reasonable care” for the safety and security of their guests. They had to make sure that the security guard was available in the hotel premises. In this case, the hotel breached the expected security measures as there were no security personnel’s available at the time of the incident as the case shows. Because, if there were security personnel’s, they would have prevented the assailant to carry Mr. Margreiter to a parking lot three blocks away from the Monteleone.

2) Hotel has a general duty to reasonably protect guests from harm caused by other guests or people. The Hotel was negligent in controlling access to the evaluator. Probably, the hotel didn’t have security cameras also. The hotel didn’t take proper care to secure the premises.

3) Hotels have an affirmative duty to make the premises reasonably safe for their guests. The very fact that assailant could enter into Mr. Margreiter’s room suggests that they had access to the alternative keys and the hotel management should have looked into updating the key system for the rooms. There should be some sort of an audit system in place so each key is accounted for or is voided if the customer forgets to turn it in.

4) Hotel is at fault for this crime as they failed in its duty to provide reasonable security and the assailant got into the plaintiff’s room and cause immense damage to him and the harm was actually done as a result of the negligence.

It is very clear from the above that the hotel didn’t have reasonable security standards and failed to enforce or implement them in some way. This led to immense suffering and damage to Mr. Margreite and the hotel is liable to compensate for this damage done to Mr. Margreite.

  1. What defense(s) does the hotel have on its side? List (and define) those here. Very briefly state why you think the hotel could use this defense. (Points : 10)

Ans: 1) The hotel is responsible for general safety of each guess but not absolute safety. Absolute safety means total and complete security.

2) Hotels are not liable for every accident or loss that occurs on the premises. When someone books a room and sign the paperwork at the time of check in, one releases some of the liability from the hotel to take responsibility upon oneself. For example, in the pool area it is always posted “No lifeguard on duty”.

3) The Hotel would not be liable if Mr. Margreiter was in fact drunk and he let the men into his room. The attack happened outside the hotel premises or at least Mr. Margreiter was found unconscious outside the hotel premises in inebriated state. Any incident that happens outside the premises, the hotel mayn’t be held responsible for the same.


4) Hotels are to take reasonable care of their guests. They do have an audit system that they track all key cards or destroy them after each use. The hotel also can contend that they followed all the security measures and standards and did everything that was reasonably adequate from the security perspective for their guests.

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ACCT 301 Week 2 Homework Answer

In two to three paragraphs, describe the Sarbanes-Oxley Act and why it is important to the accounting profession. (15 points)

Ans: The Sarbanes-Oxley Act was passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act (SOX) mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud. SOX was enacted in response to the accounting scandals in the early 2000s. Scandals such as Enron, Tyco, and WorldCom shook investor confidence in financial statements and required an overhaul of regulatory standards.

SOX was enacted following a series of failures involving various functions designed to protect the interests of the investing public. Containing several highly controversial provisions, SOX created a total revision of the regulatory framework for the public accounting and auditing profession and provided guidance for strengthened corporate governance.

Name and briefly describe the five components of COSO’s internal control framework. (10 points)

Ans: The Control Environment – relates to the control consciousness of the people within the organization. The control environment is the basis for all other components of internal control.Risk Assessment – refers to the organization’s identification, analysis, and management of the risks that are related to financial statement preparation, in order to ensure that financial statements are presented fairly and in compliance with generally accepted accounting principles.Control Activities – the organization’s policies and procedures which help ensure that necessary actions are taken to address the potential risks involved in accomplishing the entity’s objectives.Information and Communication – focuses on the nature and quality of information needed for effective control, the systems used to develop such information, and reports necessary to communicate it effectively.Monitoring – involves assessing the quality and effectiveness of the organizations internal control process over time. It includes assessing the design and operation of controls, and assessing compliance with policies and procedures. It also provides for the implementation of appropriate actions when necessary. 

Describe the relationship between the Sarbanes-Oxley Act and COSO. (10 points)

Ans: COSO issues articles that aim to assist public companies to comply with sections of the Sarbanes-Oxley Act. COSO is also the standard by which Sarbanes-Oxley Act compliance is judged.

Tom Jackson is a CPA who really likes to go to Las Vegas, play poker, and bet on football games. Tom knows that the accounting profession disapproves of gambling, but because he spends a lot of time studying sports facts and how to win at poker, he feels that he is simply making educated decisions based on facts. He says that this is no different from using accounting information to buy stocks. Use the fraud triangle as a basis to comment on Tom’s gambling activities. (15 points)

Ans: Using the fraud triangle, I believe Tom can correlate with Opportunity and Rationalization. Tom being a CPA creates the opportunity to have a mathematical advantage over statistical sports betting and card playing. He attempts to rationalize his endeavors by stating that “it is no different from using accounting information to buy stocks.”

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ECO 425 Homework 6 Lessons 11 and 12 Answer

Economics 425

Homework 6

Lessons 11 and 12

1.(10 points)Consider two metropolitan areas, one that has many small school districts and one that has only a few large school districts. In a paragraph, what are the efficiency and equity effects of introducing a voucher system likely to differ across these two areas?
2.(30 points) Suppose the town of State College has three families, each with one child, and each of which earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the public school system in the town, which any family can then freely attend. Education spending is $6,000 per student in the public schools. The three families differ in their preferences for education. Though families A and B both send their children to the public school, family B places a greater value on education than family A. Family C places the greatest relative value on education and sends its child to private school.
1.Graph the budget constraints facing each of the three families and draw a possible indifference curve which could correspond to the choice each family makes.

The city council is considering replacing its current system with a voucher system. Under the new system, each family would receive a $6,000 voucher for education, and families would still be able to send their children to the same public school. Since this would be more costly than the current system, they would also raise taxes to $6,000 per household to pay for it.
1.Draw the budget constraint the families would face under this system.

Suppose that, when the new system is introduced, family A continues to send their child to public school, but family B now sends their child to private school (along with family C’s child).
1.Explain how you know that family C is made better off and family A is made worse off by the voucher policy.
2.Show, using a diagram, that it is ambiguous whether B would be made better or worse off under the policy.


1.(10 points) In business, there is a tension between the principals (shareholders/owners) and agents (managers). The managers may choose policies that increase short-term profitability (and their bonuses) at the expense of long-term profitability. In a paragraph, describe why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
2.(20 points) Voters rarely get to choose the exact level of spending on a public good. Instead, they are provided with two options—a proposed spending level posed by the government and a default (or “reversion”) level that would be enacted if the proposal were rejected by voters. The “Leviathan” theory of bureaucracy states that governments will select intentionally large proposed spending levels and default levels that are well below the desired level of spending. In a paragraph (or two) explain why this behavior is consistent with a size-maximizing government?
3.(30 points) “Logrolling” is a phenomenon in which elected representatives trade votes with one another. For instance, Representative A may be willing to vote for Representative B’s prefered policy, even if A doesn’t like it, provided that B will vote for Representative A’s prefered policy, even if B doesn’t like it.
4.Suppose we have the follwing three projects up for vote: A naval ship, a hospital, and a park. There are three representatives who will individually vote on the projects. The net social benefits to the constituents of each representative are given in the table below. Note these benefits may be negative, meaning that the policy actually does harm to the constituents of the representative.

Project John Dennis Susan
Naval Ship 200 -75 -40
Hospital -40 150 -25
Park -100 -80 360



What are the total benefits from each project?
1.If a vote were held for each project, what would be the result for each project? Is this socially optimal?
2.If these reperesentatives were to logroll (trade votes) to get their prefered policy to pass, what would be the result? (Hint: one of these representatives will be disappointed.)
3.Is the final result from c) an improvement over the outcome of b)? Is it optimal?
4.As hinted, one of the representatives will be left out of the logrolling. In principal, is there anything else that representative can do to get his/her prefered policy passed?
5.Now suppose the benefits looked like this:

Project John Dennis Susan
Naval Ship 200 -170 -90
Hospital -100 150 -80
Park -250 -130 360


What are the total benefits from each project?
1.If a vote were held for each project, what would be the result for each project? Is this socially optimal?
2.If these reperesentatives were to logroll (trade votes) to get their prefered policy to pass, what would be the result?
3.Is the final result from h) an improvement over the outcome of g)?
4.What conclusions, if any, can we make about the practice of logrolling from these examples?


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ECO 425 Homework 6 Lessons 11 and 12 Answer

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Separate the current assets from non-current assets and provide a total for each Answer

Required: 1. Using the information provided prepare a Balance Sheet. Separate the current assets from non-current assets and provide a total for each. Also separate the current liabilities from the non-current liabilities and provide a total for each. 2. Using the Balance Sheet from your answer above calculate;


Balance Sheet      
Cash 8,442    
Short-term Investments and Marketable Securities 8,109    
Receivables 4,812    
Allowance for Doubtful Accounts -53    
Prepaid Expenses 2,781    
Inventories 3,264    
Other Current Assets 2,973    
Total Current Assets   30328  
Long-term Investments 10,448    
Property, Plant and Equipment 23,486    
Accumulated Depreciation -9,010    
Trademarks 6,527    
Other Intangible Assets 20,810    
Other Non-current Assets 3,585    
Total Non Current Assets 55,846 55846  
Total Assets   86174  
Liabilities and SHE      
Income Taxes Payable $471    
Accounts Payable 8,680    
Short Term Notes Payable 17,874    
Other Current Liabilities 796    
Current Liabilities   27821  
Long-Term Liabilities 14,736    
Other non-current Liabilities 10,449    
Common Stock 1,760    
Non current Liabilities   26,945  
Total Liabilities   54,766  
Shareholders’ Equity      
Paid-in-Capital in Excess of Par Value 11,379    
Retained Earnings 55,038    
Treasury Stock -35,009    
Total SHE   31,408  
Liabilities and SHE   86,174  
Current Ratio,   1.09 30328/27821
Days in Inventory,   60.89 365*3178.5/19053
Average Collection Period,   36.79 365*4839.5/48017
Return on Assets Ratio,   10.86% 9019/83074
Debt to Total Assets and   63.55% 54766/86174
Return on common stockholders’ equity   28.48% 9019/31664.5


Required: Using the information provided above: 1. Prepare a multiple-step income statement 2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.


(Points : 36)


Income Statement  
Net Sales 466,114
Cost of Goods Sold 352,488
Gross Profit 113,626
Operating, Selling and Administrative Expenses 88,873
Operating Profit 24,753
add other Income  
Membership Revenues 3048
Earnings before interest and taxes 27,801
#REF! 2,064
Earnings before taxes 25,737
less Taxes 7981
Net Income 17,756
Gross profit/Sales  
113626/466114 24.38%
Net Income /Sales  
17756/466114 3.81%


The gross profit margin is around 24%, while the net profit margin is around 4%. It shows that the profit margin available to recover operating expenses which is around 24% and after deduction of operating expense, only 4% of sales are available; it shows that 20% has been used to meet operating expenses.


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MGMT 640 Financial Decision Making for Managers Final Exam Part 2 Answer

MGMT 640 Financial Decision Making for Managers Final Exam Part 2 Answer

MGMT 640 Financial Decision Making for Managers Final Exam Part 2 Answer

Final Exam Part 2

Question 1
Maxx Inc. has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Designing products $377,200 6,600 product design hours
Setting up batches $52,678 7366 batch set-ups
Assembling products $25,122 4,018 assembly hours
The activity rate for the “designing products” activity cost pool is:

Question 2
Sasha Company allocates the estimated $184,800 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows:
Department Employees
Accounting 4
Production 35
Sales 13
How much of the accounting department costs will be allocated to the production?

Question 3 0 / 1 point
Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory. Information about the departments is presented below:
Number of Number of Square
Department Costs Employees Feet Occupied
Payroll (S1) $148,000 2 2,000
Maintenance (S2) $220,000 8 64,000
Molding (P1) 71 100,000
Finishing (P2) 49 60,000
Packaging (P3) 21 40,000
Medusa uses the direct method to allocate costs. Round all answers to the nearest dollar.
What amount of the payroll department costs will be allocated to the molding department?

Question 4
The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $7,600, they could be sold for $18,700. Alternatively, the keyboards could be sold “as is” for $7,800. What is the net advantage or disadvantage of re-working the keyboards?

Question 5
Ritz Company sells fine collectible statues and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping and Rand has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below:
Cost Pool Total Costs Cost Driver Annual Activity
Packaging and shipping $169,500 Number of boxes shipped 21,400 boxes
Final inspection $195,900 Number of individual items shipped 96,400 items
General operations and supervision $82,000 Number of orders 9,300 orders
During the period, the Far East sales office generated 659 orders for a total of 6,160 items. These orders were shipped in 1,345 boxes. What amount of shipping department costs should be allocated to these sales?

Question 6
Baller Financial is a banking services company that offers many different types of checking accounts. The bank has recently adopted an activity-based costing system to assign costs to their various types of checking accounts. The following data relate to the money market checking accounts, one of the popular checking accounts, and the ABC cost pools:
Annual number of accounts = 56,000 accounts Checking account cost pools:
Cost Pool Cost Cost Drivers
Returned check costs $2,710,000 Number of returned checks
Checking account reconciliation costs 51,000 Number of account reconciliation requests
New account setup 640,000 Number of new accounts
Copies of cancelled checks 378,000 Number of cancelled check copy requests
Online banking web site maintenance 187,000 Per product group (type of account)

Annual activity information related to cost drivers:
Cost Pool All Products Money Market Checking
Returned check 200,000 returned checks 18,000
Check reconciliation costs 378,000 checking account 420
New accounts 56,000 new accounts 15,000
Cancelled check copy requests 98,000 cancelled check 60,000
Web site costs 5 types of accounts 1

Calculate the overhead cost per account for the Money Market Checking.

Question 7
Sosa Company has $39 per unit in variable costs and $1,900,000 per year in fixed costs. Demand is estimated to be 138,000 units annually. What is the price if a markup of 35% on total cost is used to determine the price?

Question 8
Bob’s Company sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in order to maximize profits?
Units Sold Price
30,000 $10
40,000 $9
50,000 $8
60,000 $7





Question 9
A retailer purchased some trendy clothes that have gone out of style and must be marked down to 30% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation?

the original selling price

the anticipated profit

the original purchase price

the current selling price

Question 10 0 / 1 point
Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below:
Cost Pool Annual Cost Cost Driver Annual Driver Quantity

Processing electronic orders $1,000,000 Number of orders 500,000
Processing non-electronic orders $2,000,000 Number of orders 400,000
Picking orders $3,000,000 Number of different products ordered 800,000
Packaging orders $1,500,000 Number of items ordered 50,000,000
Returns $2,000,000 Number of returns 50,000
If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered?

Question 11
Costa Company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. Barton Company has approached Costa about buying 2,000 units for only $300 each. The units would be packaged in bulk, saving Costa $20 per unit when compared to the normal packaging cost. Normally, Costa has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Costa were to accept this special order?

Profits would increase $40,000.

Profits would increase $60,000.

Profits would decrease $200,000.

Profits would increase $80,000

Question 12
A company has $7.80 per unit in variable costs and $3.60 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.55, what price should be charged if 57,000 units are expected to be sold?

Question 13
Customer profitability analysis might result in:

dropping some customers that are unprofitable.

lowering price or offering incentives to profitable customers.

giving incentives to all customers to place orders online.

All of the above.

Question 14
The Estrada Company uses cost-plus pricing with a 0.44 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $3.70. In addition, the company incurs $195,000 in fixed costs annually. If demand falls to 77,700 units and the company wants to continue to earn a 0.44 return, what price should the company charge?

Question 15
A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $121.00 per unit. The company requires a profit of 0.28 of selling price. How much is the target cost per unit?

Question 16
A company using activity based pricing marks up the direct cost of goods by 0.24 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.80 per order placed; $3.60 per separate item ordered; $25.40 per return. A customer places 5 orders with a total direct cost of $3,000, orders 299 separate items, and makes 8 returns. What will the customer be charged?

Question 17
A law firm uses activity-based pricing. The company’s activity pools are as follows:
Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity

Consultation 198,000 Number of consultations 80 consultations
Administrative Costs 140,000 Admin labor hours 9,400 labor hours
Client Service 96,000 Number of clients 110 clients
The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?

Question 18
The Break-Even point is the

number of units sold that allow the company to neither a profit nor a loss

number of units sold that allow the company to pay labor their wages

dollar revenues that allows the firm to pay the required rate of return to its investors

dollar profits that allows the firm to pay the required rate of return to its investors

Question 19
Which of the following is not part of the Process of Cost Allocation

Select an allocation base to relate the cost pools to the cost objectives

Form cost pools

Identify the cost objectives

Allocate revenues to different products of the firm

Question 20
Opportunity costs are:

Never incremental costs

Always incremental costs

Sometimes sunk costs

Greater than sunk costs