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Cyril Is a Customer Service Officer at a Mobile Phone

question 48

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Cyril is a customer service officer at a mobile phone company.Jane is interested in a mobile plan.After Cyril explains the Super Value price plan to her, Jane exclaims, 'So I'll have unlimited text usage! I can message my friends all day, every day without paying a cent! I'll sign up right now!' Cyril knows that the plan only provides users with 50 free text messages a month but says nothing to Jane.One month later, Jane's phone bill is $2000.Has the mobile phone company, as a result of Cyril's actions, breached ACL s 18?


Definitions:

Batch-Level Cost

Costs that are incurred as a result of producing a batch of products, rather than the production process as a whole.

Unit-Level Cost

A cost that is directly incurred for each unit of production or service provided.

Cost Pools

The accumulation of costs related to an indirect activity.

Cost Drivers

Factors or activities that have a direct impact on the total cost of a product or service.

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