Moss Ltd Has the Following Activities: Creating Bills of Materials (BOM)

question 76

Multiple Choice

Moss Ltd. 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: 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:
What is the cost assigned to the improving processes activity?

• A) £250,000
• B) £25,000
• C) £43,750
• D) £51,000

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Definitions:

Fundamental Attribution Error

is the cognitive bias that leads individuals to attribute others' actions to their character or personality while underestimating situational influences.

Actor-Observer Effect

A psychological tendency to attribute one’s own actions to external factors while attributing others’ actions to their internal characteristics.

Self-Serving Bias

The common human tendency to attribute positive events to their own character but attribute negative events to external factors.

Personal Experience

An individual’s direct observation or participation in events, forming the basis for knowledge, attitudes, or beliefs.