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Assume that the accounts payable department of a company has five clerks; each one is paid $25,000 per year ($125,000 total clerical salaries).On average,the clerks spend:
20% of time on processing payments
30% of time matching invoices,receiving documents,and billing statement
50% of time correcting errors in the various documents
In addition,long distance telephone costs of $1,700 are directly traced to the activity "correcting errors."
A. Assign the clerical sal ary cost to each of the three activities.
B. What is the total cost of the "correcting errors" activity?
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The action of using up goods and services by households or individuals, an essential concept in economics that relates to demand and spending habits.
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A concept or condition that implies the absence of constraints or the ability to act, speak, or think without external restrictions.
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Describes the political, social, and economic conditions and changes in Western countries after a major war, often referencing the period following World War II.
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