Answer the Following Questions Using the Information Below:
at the Gregan

question 86

Multiple Choice

Answer the following questions using the information below:
At the Gregan Company,the cost of the personnel department has always been charged to production departments based upon number of employees.Recently,opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $320 000.
$$\begin{array} { l r r r } \text { Department } & \underline { \mathbf { A } } & \underline { \mathbf { B } } & \underline { \mathrm { C } } \\\text { Number of employees } & 30 & 270 & 100 \\\text { The number of new hires } & 8 & 12 & 5\end{array}$$
-Which cost estimation method is being used by Gregan Company?

• A)The industrial engineering method
• B)The quantitative analysis method
• C)The account analysis method
• D)The conference method

---

Definitions:

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a person in need when other people are present.

Commotion

Disturbance or turmoil caused by a large amount of noise and confusion.

Social Exchange Theory

A sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits.

Equity

The concept of fairness or justice in the way people are treated, often related to social, economic, and legal contexts.