If I Worked in Purchasing in My Company, It Would

question 271

True/False

If I worked in purchasing in my company, it would be a conflict of interest and unethical for me to accept season tickets for my city's NBA team from the company that has supplied catering for the company's training sessions.

---

Definitions:

Total Manufacturing Cost

The cumulative expense of producing goods, including labor, materials, and overhead costs.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.

Machine-Hours

A measure of the amount of time machines are run in the production process, used in allocating costs to products.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.