Sales Smart Allocates Indirect Labour Costs to Its Two Departments

question 6

Multiple Choice

Sales Smart allocates indirect labour costs to its two departments, F and M using number of employees per department as the cost driver. For the current year the number of employees in department F are estimated to be 80 and for M department 45 and total indirect labour costs for the departments are budgeted at $2,400,000. The amount allocated to the departments are:

• A) F $1,536,000: M $864,000
• B) F$800,000: M $1,600,000
• C) F $1,920,000: M $1,080,000
• D) F $1,600,000: M $800,000

Recognize the impact of a culture of blame on healthcare quality and safety.

Identify the fundamental principles of quality improvement in healthcare.

Differentiate between traditional quality assurance models and modern needs for quality in healthcare.

Know the roles and effectiveness of process teams in quality improvement.

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Definitions:

Split-off Point

The stage in a process manufacturing at which various products become separately identifiable and can be handled as distinct items.

Joint Process

A production process in which two or more products are generated simultaneously from the same raw materials or input.

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.