Distinguish between escapable and inescapable costs. Give an example
Escapable costs are directly related to the system, and they cease to exist when the system ceases to exist. An example would be an annual software support fee for purchased software. If the system ceases to exist, the support for the software will no longer be necessary. Inescapable costs, on the other hand, represent costs which will not be eliminated if the system is scrapped. An example would be an overhead charge for office space in a building which is owned by the company. If the system ceases to exist, these costs will be allocated to the remaining departments.
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According to the Uniform Guidelines, a rule of thumb that identifies selection practices that favor a disproportionate number of nonprotected class members is the
A. two-thirds rule. B. acid-test rule. C. ratio rule. D. four-fifths rule.
The decision variables for frequency and monetary value are defined as 1 if customers in a given frequency and given monetary value group should be reached. Otherwise, they are 0
a. True b. False
Brick's debt to Conry is past due. Conry brings a legal action against Brick to collect the debt. To ensure that a judgment in Conry's favor will be collectible, Conry asks the court to order the seizure of Brick's property. Exempt from such an order in most states is
A. all of Brick's personal property. B. as much of Brick's personal property as Brick opts to exempt. C. equipment that Brick uses in a business up to a specified amount. D. none of Brick's personal property.
Uninsured motorist's protection coverage provides coverage for injuries caused by an uninsured motorist, a negligent driver whose insurance company is not solvent, or a hit-and-run driver
Indicate whether this statement is true or false.