Label as the Better Choice on Utilitarian Calculations , a or B

question 16

Multiple Choice

Label as the better choice on utilitarian calculations , A or B, using a scale of -10 (very painful) to +10 (very pleasurable) for degrees of pleasure or happiness.

• A) makes 5 people happy and no one unhappy,
• B) makes 9 people happy and me unhappy.

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Definitions:

Fixed Overhead Budget Variance

The difference between the fixed overhead costs that were budgeted and the actual fixed overhead costs incurred.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production or sales volume, such as salaries of supervisors and rent for factory premises.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the volume of production, including costs like factory rent, salaries of supervisors, and depreciation of factory equipment.

Direct Labor

The cost of wages for labor directly involved in the production of goods or services.