ZanaTech Has an On-Site Cafeteria in Which It Provides Free

question 74

Multiple Choice

ZanaTech has an on-site cafeteria in which it provides free meals for employees.The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department.The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15.There are 20 employees in the cafeteria.The cafeteria's costs are budgeted at $144,000 for the year.When the cafeteria's costs are allocated, what is the amount per employee that will be allocated to the packaging department each year?

• A)$2,400
• B)$9,600
• C)$1,800
• D)None of these answer choices are correct.

Understand the impact of portfolio changes on expected return and risk.

Explain the efficient markets hypothesis and its implications for investment strategy.

Graph utility functions and derive implications for individual risk preferences and investment choices.

Understand the definitions and differences between moral hazard and adverse selection in the context of insurance markets.

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Definitions:

Mudstone

A fine-grained sedimentary rock formed from mud, characterized by a mixture of clay and silt-sized particles.

Stratigraphic Section

A representation of a vertical sequence of the layers of rocks in a particular area, showing their relative positions and compositions.

Basal Conglomerate

A sedimentary rock consisting of rounded clasts or pebbles embedded in a matrix of finer-grained material, often forming the base of a sedimentary sequence.

Plant-Rich Swamp

Wetland ecosystems characterized by the abundance of vegetation, particularly various types of plants, often found in low-lying areas.