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Shelli Runs a Small Boutique in Tel Aviv

question 27

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Shelli runs a small boutique in Tel Aviv. She has built up a very nice client base and regularly sends her clients a newsletter. A new bakery business down the block wants to buy Shelli's client list from her. If Shelli does sell the list, which ethical issue related to IT would be involved?

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, remaining constant over a period of time.

Variable Expenses

Charges that adjust directly with the volume of production or sales, encompassing costs related to raw materials and direct labor.

Fixed Expenses

Costs that do not change with the level of production or sales within a certain range and for a specific period.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

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