Moss Corporation Has the Following Activities: Creating Bills of Materials

question 54

Multiple Choice

Moss Corporation has the following activities: creating bills of materials (BOM) , studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tooling. The general ledger accounts reveal the following expenditures for manufacturing engineering:
$$\begin{array} { l r } \text { Salaries } & \$ 5,000 \\\text { Equpment } & 40,000 \\\text { Supplies } & 10,000 \\\text { Total } & \$ 125000\end{array}$$ The equipment is used for two activities: improving processes and designing tooling.Thirty-five percent of the equipment's time is used for improving processes and 65 percent is used for designing tools.The salaries are for two engineers.One is paid $50,000,while the other earns $25,000.The $50,000 engineer spends 40 percent of his time training employees in new processes and 60 percent of his time on improving processes.The remaining engineer spends equal time on all activities.Supplies are consumed in the following proportions:
$\begin{array}{llr} \text { Creating BOMs} &25\%\\ \text { Studying capabilities} &10\%\\ \text { Improving processes } &20\%\\ \text { Training employees } &25\%\\ \text { Designing tooling } &20\%\end{array}$

-Refer to the figure.What is the cost assigned to the designing tooling activity?

• A)$25,000
• B)$33,000
• C)$81,250
• D)$125,000

Understand the concept and types of organizational-level incentive plans.

Identify circumstances where group incentives and competition are beneficial.

Recognize the advantages of profit sharing in increasing organizational productivity.

Understand the drawbacks of various forms of incentive pay, including stock ownership.

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Definitions:

Selective Attention

The process of focusing on a specific aspect of information while disregarding other perceivable information.

Short-term Memory

The component of the memory system that is responsible for holding small amounts of information in an active, readily available state for a short period.

Thorndike

An American psychologist known for his work in comparative psychology and the law of effect, related to learning.

Chunking

A method of breaking down large pieces of information into smaller, more manageable units to aid in memory retention.