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A college's student body includes a large number of commuter students.This college has lockers that are available for student use.Each locker has a combination lock.When a student is assigned a locker,the combination of the lock is given to the student.There are more lockers available than there are students who desire one.In addition,the record keeping of locker assignments was incomplete.Once a student is assigned a locker,the student generally keeps that locker until the student leaves the college.Because there is no separate lock to turn in,many students simply clean out their lockers when they leave,others do not even do this.It is also not possible to determine which lockers are currently being used by looking at them,contrary to the situation if there were separate removable locks.All this led to a situation where the college had no idea which lockers were currently occupied and in use and which lockers simply contained items left behind by former students.To remedy this situation,the college notified all students that all items had to be removed from the lockers within one week following the end of spring semester.At that point,all items left in the lockers would be discarded.Thereafter,anyone desiring a locker would be assigned one under a new assignment and record-keeping system.On the designated day when any remaining locker contents were to be removed,several employees opened the lockers and emptied the contents onto the floor.There were many items left in the lockers,mostly trash such as old lunch bags,notebooks,a few textbooks,and miscellaneous junk.The employees simply piled the items on the floor and were using large push brooms to sweep up the trash to place it in a dumpster.A couple of employees had salvaged some newer-looking textbooks hoping they could be sold back to the bookstore.Frank was sweeping this trash when for no particular reason he decided to pick up one of the many small paper bags from among the trash and look inside it.To his surprise,he discovered about $10,000 in cash,all $100 bills.The college has demanded that Frank turn the money over to the college.Frank claims that the money is his.There is some evidence that the money is related to illegal drug sales.Discuss the issues that would arise in determining who would get the money.
Variable Cost
Costs that change in proportion to the level of production or sales activity, such as raw material and labor costs.
Fixed Cost
Expenses that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.
Period Cost
Costs that are expensed in the period in which they are incurred, typically including selling and administrative expenses, rather than being included in the cost of goods sold.
Helpline Costs
Expenses incurred in the operation of a support service for customers, such as salaries for help desk staff and telecommunication charges.
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