Moss, Inc Currently Processes Payroll in Its Accounting Department, Which Costs

question 110

Multiple Choice

Moss, Inc. currently processes payroll in its accounting department, which costs the following per month: Moss could use a payroll processing firm instead, which would cost $1,350 per month, but the firm would provide all supplies. If Moss used the outside firm, the accountants who currently process payroll would be reassigned to other accounting tasks. How much would monthly costs be affected if Moss switched to the payroll processing firm?

• A) Increase $875
• B) Decrease $475
• C) Increase $225
• D) Decrease $225

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Definitions:

Sherman Act

A landmark federal statute in the U.S. that prohibits monopolistic practices and aims to promote competition.

Predatory Pricing

A pricing strategy where a product or service is set at a very low price with the intent to drive competitors out of the market.

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High-quality tires that offer superior performance and durability compared to standard tires, often at a higher price point.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890, which prohibits monopolistic and anticompetitive practices.