The Big Five Personality refers to the structures and propensities of people that explain their patterns of thought, emotion, and behavior. Although there are literally thousands of traits that can be used to describe an individual's personality, most traits reflect one of five broad dimensions or factors of personality: conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. It is especially useful for managers to understand the personality traits of their employees since these traits often have important implications for workplace attitudes and behaviors, such as performance and commitment. The following activity takes you through the thought process of a manager trying to hire a new sales associate based on personality assessments of the candidates. Imagine that you are a midlevel manager at a paper company and you are in the process of hiring a new sales associate. So far, you have scheduled interviews with three potential candidates. You just concluded your first interview and want to spend some time reflecting on the notes you took. In particular, you want to make sure that you have a solid grasp of each candidate's personality traits since you know how important that can be on the job. Read through the notes and classify them according to the Big Five Taxonomy of personality. Conscientiousness Agreeableness Neuroticism Took Initiative Openness to Experience Cold Hardworking Extraversion
Answers
Answer and Explanation:
Please find attachments
The big five taxonomy of personality refers to the "Big five" personality traits believed to be the traits on which many different personalities of people revolve. They include:extraversion, agreeableness, openness, conscientiousness, and neuroticism.
In the example above, based on the manager's interview with Cynthia. The manager can understand her personality by classifying using the big five personality traits based on information gathered from her and recommendations:
Cynthia took initiative: this falls under openness which are people who are creative and adventurous and like to learn new things
Cynthia could be hardworking: this falls under conscientiousness characterized by people who are generally organized and careful about things
Cynthia follows procedures: this falls under agreeableness which is the tendency to be trust and be cooperative
Cynthia seemed nervous: this falls under neuroticism which is the tendency for one to be emotionally unstable and usually have mood swings, anxiety or be sad
Cynthia was described as cold: this is also fall under neuroticism as Cynthia could be depressed
Related Questions
ZZZ-Best, Inc. recently issued $65 par value preferred stock that pays an annual dividend of $17. If the stock is currently selling for $76, what is the expected return of this preferred stock?
Answers
Answer:
r = 0.22368 or 22.368% rounded off to 22.37%
Explanation:
The expected or required rate of return on a preferred stock is the return provided by the stock in terms of dividend as a proportion of the current market price. The expected return on a preferred stock can be calculated as follows,
r = Dividend / current market price
r = 17 / 76
r = 0.22368 or 22.368% rounded off to 22.37%
Data pertaining to a company's joint production for the current period follows
L M
Quantities produced 310 lbs 260 lbs
Market value at split-off point . $10.2Mb $20.4/lb
Compute the cost to be allocated to Product L for this period's $792 of joint costs if the value basis is used. (Do not round intermediate calculations.)
a. $295.81.
b. $49619.
c. $39600.
d. $2,926.00.
e. $962.19.
Answers
Answer:
a. $295.81
Explanation:
Total market value = (310 * 10.2) + (260 * 20.4)
Total market value = 3,162 + 5,304
Total market value = 8466
Joint cost allocated to L on basis of value
= [ (310 * 10.2) / 8,466] * 792
= (3,162 / 8,466) * 792
= $295.81
Brodrick Company expects to produce 21,200 units for the year ending December 31. A flexible budget for 21,200 units of production reflects sales of $508,800; variable costs of $63,600; and fixed costs of $142,000. Assume that actual sales for the year are $587,200 (26,300 units), actual variable costs for the year are $113,900, and actual fixed costs for the year are $137,000. Prepare a flexible budget performance report for the year.
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Answer:
Flexible budget performance report for the year
Flexible budget Actual Variance Fav/Unf
Sales 631,200 587,200 44,000 UNF
Variable cost (78,900) (113,900) 35,000 F
Contribution 416,000 368,000 48,000 UNF
margin
Fixed cost (142,000) (137,000) 5000 UNF
Net operating 274,000 231,000 43,000 UNF
income
Working:
a. At flexible budget, selling price per unit = $508,800 / 21,200 = $24 per unit . Total sales =26,300 *24 = $631,200
b. Variable cost per unit = $63,600 / 21,200 = $3 per unit . Total cost = 3 * 26,300 = 78,900
Jessie and Paul have worked in the same office at DEF Insurance LLC for 6 years. Jessie has always taken extra care to follow the office norms and ensure that everyone has a happy and harmonious working experience. Paul has been very driven during his years at DEF Insurance, and though he started as an insurance agent, he has since been promoted to the agency manager and proudly displays all of his awards on the wall of his new office. According to Learned Needs Theory, Jessie most likely has a high: Group of answer choices
Answers
Answer:
Need for affiliation
Explanation:
from the learned needs theory, Jessie most likely has a high need for affiliation.
This describes her need to feel a sense of involvement and belonging within her work environment.
By following office norms and trying to ensure everyone is happy, she is expressing her need for open and good relationships at work. People like Jessie are usually friendly, outgoing and cooperative
Lance contributed investment property worth $507,500, purchased Five years ago for $312,500 cash, to Cloud Peak LLC in exchange for an 70 percent profits and capital interest in the LLC. Cloud Peak owes $380,000 to its suppliers but has no other debts.
Required information
A. What is Lance’s tax basis in his LLC interest?
B. What is Lance’s holding period in his interest?
C. What is Cloud Peak’s basis in the contributed property?
D. What is Cloud Peak’s holding period in the contributed property?
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Answer:
a. Lance's Tax basis in his LLC interest
= Basis of investment property + Shares in LLC debt
= $312,500 + ($380,000 * 70%)
= $312,500 + $266,000
= $578,500
Therefore, LLC common debt obligation treated as non-recourse debt, lance income allocation ratio is used to allocate a share of LLC debt to him
b. Lance holding period in his interest is 5 years. The holding period of the contributed assets "tacks onto" his partnership interest because Lance contributed a capital asset
c. Cloud Peak's basis in the contributed property is $312,500. Also, the carryover basis would be taken by the LLC in the contributed property
d. Cloud's Peak holding period in the contributed property is 3 years
The Baldwin Company currently has the following balances on their balance sheet: Total Assets $260,881 Total Liabilities $150,673 Retained Earnings $52,700 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year
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Answer:
common stock = $80,308
Explanation:
assets = liabilities + equity
current balance:
$260,881 = $150,673 + $110,208
$110,208 = common stock + retained earnings = $57,508 + $52,700
next year:
net income = $44,200
dividends = $12,000
assets = $260,881 + $55,000 = $315,881
liabilities = $150,673
equity = $315,881 - $150,673 = $165,208
retained earnings = $52,700 + $44,200 - $12,000 = $84,900
common stock = $165,208 - $84,900 = $80,308
Bronco Corporation discovered these errors in August of Year 3:
Year Depreciation Overstated Prepaid Expense Omitted
1 $2500 $3000
2 4000 2000
Assume all current items are two months in duration. Net Income for Year 2 was $18,000. Assume all errors are discovered in August of Year #3. The Year #2 books are closed. The net effect on Year #3 Beginning Retained Earnings caused by the August Year #3 correcting journal entries was:
a. $5,500
b. $6,500
c. $6,000
d. $8,500
e. $4,500
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Answer:
e. $4,500
Explanation:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $3,000
2 $4,000 $2,000
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $3,000 - $2,000 = $23,000
This means that year 2's net income was understated by $5,000.
But year 1's net income was overstated by = $2,500 - $3,000 = -$500.
The adjustment on the retained earnings account should be $5,000 - $500 = $4,500
If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity in order to minimize the total annual inventory cost?
A. 707
B. 909
C. 634
D. 500
E. 141
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Answer:
22
3 25
6 15
a. Determine which variable is the dependent variable.
b. Compute the least squares estimated line.
c. Compute the coefficient of determination. How would you interpret this value22
3 25
6 15
a. Determine which variable is the dependent variable.
b. Compute the least squares estimated line.
c. Compute the coefficient of determination. How would you interpret this value
When the actual cost of direct materials used exceeds the standard cost, the company must have experienced an unfavorable direct materials price variance.
a. True
b. False
Answers
Answer:
True
Explanation:
The cost was bigger than they had budgeted for, so it was an unfavorable variance.
When estimating the incremental after-tax free cash flows for a project, we include which one of the following costs?A. Investment costsB. Opportunity costsC. Sunk costsD. Costs that impact another product that the firm does not produce.
Answers
Answer: Opportunity cost
Explanation:
Opportunity cost is the cost of what one forgoes when one makes another decision or another choice. When estimating the incremental after-tax free cash flows for a project, the opportunity cost is included.
A sunk cost is a type of cost that an economic agent such as the individual, the firm or the government has already spent and therefore cannot be recovered again. This isn't included.
Juice Drinks has beginning inventory of $10,000, purchases in the amount of $150,000, and ending inventory of $8,000. Juice Drinks cost of goods sold is $ ____________.
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Answer:
$152,000
Explanation:
Given the data as shown below;
Opening inventory = $10,000
Purchases = $150,000
Ending inventory = $8,000
Therefore,
Juice drinks cost of goods sold = Opening inventory + Purchases - Ending inventory
= $10,000 + $150,000 - $8,000
= $152,000
As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D 0 = $0.80; P 0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from reinvested earnings?
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Answer:
The cost of common equity from reinvested earnings is 11.84%
Explanation:
The constant growth model of DDM or DCF approach is used to calculate the price of a stock today whose dividends are expected to grow at a constant rate forever. The model values the stock based on the present value of the expected future dividends form the stock.
The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
P0 is price todayD0 is the dividend todayr is the cost of equityg is the growth rate in dividendsPlugging in the available values for all the variables, we can calculate the r or cost of common equity to be,
22.5 = 0.8 * (1+0.08) / (r - 0.08)
22.5 * (r - 0.08) = 0.864
22.5r - 1.8 = 0.864
22.5r = 0.864 + 1.8
r = 2.664 / 22.5
r = 0.1184 or 11.84%
Myers, Inc.
Income Statement
For the Year Ended December 31, 2020
Sales revenue $400,000
Cost of goods sold 180,000
Gross profit 220,000
Expenses (including $10,000 interest and $20,000 income taxes) 80,000
Net income $ 140,000
Additional information:________.
1. Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020.
2. The market price of Myers stock was $9.59 in 2020.
3. Cash dividends of $19,600 were paid, $3,000 of which were to preferred stockholders.
Compute the following measures for 2020. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
(a) Earnings per share $
(b) Price-earnings ratio times
(c) Payout ratio %
(d) Times interest earned times
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Answer:
a. $6.85
b. 1.4 times
c. 11.9%
d. 17 times
Explanation:
a) Weighted Average number of common shares outstanding = (Number of common shares outstanding in the beginning + Number of common shares outstanding in the end)/2
= (16,000 +24,000) /2
= 20,000 shares
Earnings per share = (Net income – Preferred stock dividend)/Weighted Average number of common shares outstanding
= (140,000 - 3,000) / 20,000
= 137,000/20,000
= $6.85
b) Price earnings ratio = Market price of 1 common share/Earnings per share
= 9.59 / 6.85
= 1.4 times
c) Payout ratio = Cash dividends on common stock/Net income
= 16,600 / 140,000
= 0.11857
= 11.9%
d) Times interest earned = (Net income + Interest expense + Tax expense) / Interest expense
= (140,000 + 10,000 + 20,000)/10,000
= 170,000 / 10,000
= 17 times
Supply Chain Integration Supply chain integration is a major contributing factor to organizational success. The goal of supply chain integration is alignment within the supply chain. As a business leader, how can you achieve greater supply chain integration with suppliers and customers
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Answer:
True.
Explanation:
The integration of the supply chain comes from the use of the total quality management tool that will make the supply chain effective as a whole, generating significant improvements at each stage of the chain, with the help of technologies that streamline operations. Integrating the supply chain means organizing the steps so that there is a reduction in costs, time, waste and continuous optimization of the processes as a whole, making the product reach the final consumer correctly meeting their expectations and needs.
White says, “We live in a world where success is defined by income.” Do you agree with this statement? Discuss examples in your life that support or negate this idea.
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Answer:
yes i agree coz nowadays even in my family, the outsiders give more respect and praise my big brother as he earns big income
The decision that could be made regarding the statement that "In the modern world, income has turned equivalent to success" would be:
Yes.
The reason to agree with this statement is due to the increased importance that the modern world has provided to money.For example, a person is considered successful only when he earns a handsome amount while a person with a lower or average income but greater satisfaction level is considered unsuccessful. However, there is also a saying that "money can't buy happiness" which suggests that people can be sad even after having money and vice versa.Thus, it depends on the individual's perception and the way they equate success with happiness or material possessions.Learn more about "Income" here:
brainly.com/question/14732695
GoSnow sells snowboards. Each snowboard requires direct materials of $128, direct labor of $53, and variable overhead of $63. The company expects fixed overhead costs of $844,976 and fixed selling and administrative costs of $391,000 for the next year. The company has a target profit of $290,000. It expects to produce and sell 11,800 snowboards in the next year. The company has a target profit of $189,800. It expects to produce and sell 11,800 snowboards in the next year. Required:Compute the selling price using the variable cost method.
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Answer:
$364.83
Explanation:
The computation of selling price using the variable cost method is shown below:-
Sales units for target profit = (Total fixed costs + Target profit) ÷ (Selling price per unit - Total Variable cost per unit)
11,800 = ($1,235,976 + $189,800) ÷ (Selling price per unit - $244)
11,800 = ($1,425,776) ÷ (Selling price per unit - $244)
(Selling price per unit - $244) = $1,425,776 ÷ 11,800
(Selling price per unit - $244) = 120.83
Selling price per unit = $120.83 + 244
= $364.83
Working note
Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs
= $844,976 + $391,000
= $1,235,976
Total variable cost = Direct materials + Direct labor + and variable overhead
= $128 + $53 + $63
= $244
Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as:
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Complete Question:
Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as:
Group of answer choices.
A. a merger strategy.
B. a bicultural audit.
C. assimilation.
D. deculturation.
Answer:
B. a bicultural audit.
Explanation:
Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as a bicultural audit.
A bicultural audit can be defined as the process of analyzing and measuring the cultural relations between two companies prior to a merger, as well as identifying the extent to which there might be cultural clashes among its employees.
Generally, bicultural audit process start with the identification of cultural differences between the merging companies. In order to create a cohesive new culture between the merging companies, a good action plan and effective strategy should be developed.
An e-business can redefine its market by removing traditional marketplace intermediaries or by creating new ways to add value to business transactions.
a. True
b. False
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Answer: True
Explanation:
An e-business is a kind of business whereby information is passed across on the internet. Since we live in a digital world, organizations now engage their customers online.
An e-business can redefine its market by removing traditional marketplace intermediaries or by creating new ways to add value to business transactions.
g An increase in taxes when the economy is above full employment ______ aggregate demand and real GDP, and the price level ______.
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Answer:
C. decreases; falls
Explanation:
As we know that
The rise in taxes results in low disposable income for individuals that lowered the spending of the consumer also the consumer spending is an element of the aggregate demand so ultimately it declines that result the curve to shift leftward or downward
Due to this, the real GDP also falls, and the price level too
Hence, the correct option is c.
If a firm is producing so that the point chosen along the production possibility frontier is socially preferred, then that firm is said to have reached its:________
a. allocative efficiency
b. productive efficiency
c. utility-maximizing efficiency
d. minimum price efficiency
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Answer:
b
Explanation:
Productive efficiency means that production is been carried out with no waste.
Production possibility frontier is a curve that shows the various combinations of goods that can be produced in an economy when all resources are fully utilised.
On the ppf, all resources are fully utilised, so there is productive efficiency.
The beta of company Myers’s stock is 2. The annual risk-free rate is 2% and the annual market premium is 8%. What is the expected return for Myers’ stock? A. 14% B. 25% C. 20% D. 18
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Answer:
18%
Explanation:
Myers's stock has a beta of 2
The annual risk free rate is 2%
The annual market premium is 8%
Therefore, the expected return for Myers's stock can be calculated as follows
= 2% + (2×8%)
= 2% + 16%
= 18%
Hence the expected return for Myers's stock is 18%
Sunny Day Manufacturing Company is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Sunny Day expects to earn on its project (net of its flotation costs) is:____________
White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the
constant rate of 8.70% into the foreseeable future. If White Lion expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be:_________
Sunny Day Manufacturing Company Co.'s addition to earnings for this year is expected to be $420,000. Its target capital structure consists of 50% debt, 5% preferred, and 45% equity. Determine Sunny Day Manufacturing Company's retained earnings breakpoint: ___________
a. $840,000
b. $980,000
c. $933,333
d. $886,666
Answers
Answer:
A lot to read and check but I will get back to you soon
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $450,000 is estimated to result in $184,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $74,000. The press also requires an initial investment in spare parts inventory of $33,000, along with an additional $3,750 in inventory for each succeeding year of the project. The shop’s tax rate is 23 percent and its discount rate is 10 percent. (MACRS schedule)
Required:
Calculate the NPV of this project.
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Answer:
Masters Machine Shop
PV of Salvage value = $74,000 x 0.683 = $50,542
Present value of total savings $449,126
less Present value of investments 494,888
Net Present Value $4,780
Explanation:
a) Data Amount Present Value
Cash Outflow $450,000 $450,000
Initial spare parts 33,000 33,000
Annual Inventory 3,750 11,888
PV of investments $494,888
Project lifespan = 4 years
Discount rate = 10%
Annual pretax cost savings = $184,000
Tax rate 23% 42,320
After Tax savings $141,680
PV of Annuity of Tax savings = $141,680 x 3.170 = $449,126
Salvage value = $74,000
PV of Salvage value = $74,000 x 0.683 = $50,542
Present value of total savings $449,126
less Present value of investments 494,888
Net Present Value $4,780
b) Master Machine Shop's Net Present Value (NPV) is the difference between the cash inflows (savings) and the cash outflows (investments) for this four-year project
What is another name for progress monitoring? a. Curriculum-based measurement c. Curriculum-based learning b. Assessment d. None of these
Answers
Answer:
Curriculum based measurement
Answer:
a. Curriculum-based measurement
It's correct
Jensen Corporation uses the percentageofsales method to estimate uncollectibles. Net credit sales for the current year amount to and management estimates % will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of . After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
Answers
Answer:
$42,300 credit balance
Explanation:
The question is incomplete:
Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,010,000 and management estimates 3% will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $18,000. After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
uncollectible accounts = $2,010,000 x 3% = $60,300 credit
the adjusting entry at the end of the year:
December 31, 202x, bad debt expense:
Dr Bad debt 60,300
Cr Allowance for uncollectible accounts 60,300
the ending balance of the Allowance for uncollectible accounts account = $60,300 - $18,000 (debit balance) = $42,300
A stock currently sells for $34 a share but is expected to increase in value over the next six months to at least $36 a share. Assume there are 6-month options available on this stock with an exercise price of $35. Which of these options should have the most value today?a. American and European calls equallyb. European callc. European putd. American pute. American call
Answers
Answer: American call
Explanation:
The price of the underlying stock is going to increase to at least $36 which is more than the exercise price on the option of $35. The option that would have more value therefore is a Call option because call options make profit when the exercise price is less than the market price.
The more valuable call option between the European and American call options is the American call option. This is because with an American call option, the holder is free to call in the option at any point in time up to the exercise date while a European option has to wait till the exercise date.
The American Call option is therefore the option with the most value today.
If the IRS intends to close a Taxpayer Assistance Center, they must notify the public at least _____ days in advance of the closure date.
Answers
Answer: 90 days
Explanation:
The Internal Revenue Service is typically known as the revenue service of the federal government as it is in charge of tax collection and enforcing tax laws.
If the IRS intends to close a Taxpayer Assistance Center, they must notify the public at least 90 days in advance of the closure date.
Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per day increased from 10 to 40. Over this price range, the price elasticity of demand for Dunkin Donuts’ regular coffee is:
Answers
Answer:
PED = -6
Explanation:
The PED or price elasticity of demand for a product measures the responsiveness of a product's demand to the changes in the price of the product. The PED is calculated as follows,
PED = % change in Quantity demanded / % change in price
PED = [(40 - 10) / 10] / [(1 - 2) / 2]
PED = -6
A PED of -6 represents that quantity demanded is highly price elastic and a negative sign means that it is a normal good.
A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and face value $1,000. Find the imputed interest income in: (a) the first year; (b) the second year; and (c) the last year of the bond’s life.
Answers
Answer:
First Year $ 17.17
Second Year $ 18.53
Last Year $ 74.08
Explanation:
Computation to Find the imputed interest income in: (a) the first year; (b) the second year; and (c) the last year of the bond’s life
Imputed Interest
First step
Using this formula
Imputed interest=(Present Value /1+Yield to maturity)^Numberd of years
Year Years Remaining to Maturity Constant Yield Value ( 1 / 1.08)^n
0 20 (1/1.08)^20= $ 214.54
1 19 (1/1.08)^19=$ 231.71
2 18 (1/1.08)^18=$ 250.24
19 1 (1/1.08)^1=$ 925.92
20 0 (1/1.08)^0=$ 1,000
Second step is to find the Imputed interest for the first year, second year; and the last year of the bond’s life
Year Years Remaining to Maturity Constant Yield Value ( 1 / 1.08)^n =Imputed Interest
0 20 $ 214.54
1 19 $ 231.71 $17.17
($231.71-$214.54)= $17.17
2 18 $ 250.24 $18.53
($250.24-$231.71)=$18.53
19 1 $ 925.92
20 0 $ 1,000 $74.08
($1,000-$925.92) =$74.08
Therefore the imputed interest will be:
First Year $ 17.17
Second Year $ 18.53
Last Year $ 74.08
A one-month summary of manufacturing costs for Rapid Routers Company follows.
Direct materials $40,000
Direct labour 20,000
Material handling costs 1,500
Product inspection and rework 2,000
Materials purchasing and inspection 500
Routine maintenance and equipment servicing 1,200
Repair of equipment 300
Required:
Classify each cost as value-added or non-value-added
Answers
Answer:
Cost Classification
Direct materials Value added
Direct labor Value added
Material handling costs Non-value added
Product inspection and rework Non-value added
Materials purchasing and inspection Value added
Routine maintenance and equipment Non-value added
servicing
Repair of equipment Non-value added
