Bennett Would Like to Propose to the Board of Directors of Benmarc

question 25

True/False

Bennett would like to propose to the board of directors of Benmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor.To Milton Friedman and others, Bennett's proposal might be considered unethical, because it violates the purpose for which the corporation was established.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific finished good.

Direct Labor Rate

The cost per hour for labor directly involved in producing goods or delivering services, typically used in calculating the total cost of production or service provision.

Machine Hours

A measure of production time, representing the total hours a machine is operated in the production of goods.

Factory Overhead Rate

The ratio of total indirect manufacturing costs to some base, commonly used to allocate overhead costs to products.