Under the reciprocal method, the usage of one support department by another is used to determine the total cost of each support department
Indicate whether the statement is true or false
true
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The cost of computer hardware to be purchased for a new system is an example of a(n) ____ cost for that system
a. direct cost b. indirect cost c. intangible cost d. recurring cost
After years of long hours and low pay, Lab technicians at a large hospital have decided that they would like to unionize. Describe the process that they will need to go through to secure union representation.
What will be an ideal response?
Fortunately, Europe was largely shielded from the economic recession that afflicted the world
economy in 2007. The European economies contracted less and have recovered much more rapidly than their counterparts in the United States and China. Indicate whether the statement is true or false
Aerial Roofing performs roofing services for commercial clients. The company recently submitted a bid of $371,000 to the Ponca School System, computed as follows:Construction materials$80,000Labor costs170,000Total direct costs$250,000Construction overhead - 30% of labor51,000Allocated administrative overhead20,000Total cost$321,000Aerial adds a 20% profit margin to all jobs, computed on the basis of total direct cost. In Ponca's case the profit margin amounted to $50,000 ($250,000 × 20%), producing a bid price of $371,000. Assume that 60% of construction overhead is fixed.Required:A. If Aerial had excess capacity, what would be the lowest cost total that the company should use when figuring its bid for the district? How can High justify this amount?B. If Aerial had no excess capacity,
what would be the lowest price that the company should charge?C. What is the primary benefit and problem of approaching a competitive bid situation with a low-bid philosophy? What will be an ideal response?