PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 7-2

question 85

Essay

PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 7-2
NAT: BUSPROG: Analytic
STA: AICPA: FN-Measurement | IMA: Cost Management | ACBSP: APC-27-Managerial Accounting Features/Costs KEY: Bloom's: Application
NOT: 5 min.
-Assume that the accounts payable department of a company has 10 clerks; each one is paid $25,000 per year ($250,000 total clerical salaries). Six of the clerks spend the following percentages of time on the three activities:
20% of their time on processing payments30% of their time matching invoices, receiving documents, and billing statement
50% of their time correcting errors in the various documents
One clerk, the head clerk, spends 50% of her time on administrative duties, and the remainder on error correction. The remaining three clerks spend 30% of their time on processing payments and the remaining 70% of their time on matching documents.
Long distance telephone costs of $1,700 are directly traced to the activity "correcting errors."

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Definitions:

Psychological Problems

These refer to mental or emotional issues that affect an individual's thoughts, feelings, and behaviors, often requiring professional diagnosis and intervention.

Repressed Memory

Memories that have been unconsciously blocked due to being associated with a high level of stress or trauma but may resurface later.

Proactive Interference

A phenomenon where older memories interfere with the recall of newer memories, often seen as a cause of forgetting.

Misinformation Effect

A memory phenomenon in which a person's recall of an event becomes less accurate due to the introduction of misleading information.