Werner Brothers, Inc

question 8

Multiple Choice

Werner Brothers, Inc., used the high-low method to derive its cost formula for electrical power cost. According to the cost formula, the variable cost per unit of activity is $2 per machine-hour. Total electrical power cost at the high level of activity was $9,400 and at the low level of activity was $9,000. If the high level of activity was 2,200 machine hours, then the low level of activity was:

• A)1,800 machine hours
• B)1,900 machine hours
• C)2,000 machine hours
• D)1,700 machine hours

Recognize the role of safety stock in compensating for demand variability and lead time uncertainties.

Grasp the importance of cyclical counting, shrinkage, and ABC analysis in inventory management.

Appreciate the strategic reasons for holding inventory in organizations and the impact of inventory on operational efficiency.

Understand the concepts of simple and compound interest.

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Definitions:

Cultural Relativism

The principle that an individual's beliefs and activities should be understood based on that person's own culture.

Ethical Perspective

An individual's or society's viewpoint on morals and the principles of right and wrong that guide behavior and decision-making.

Ethical Imperialism

An attempt to impose one’s ethical standards on other cultures.

Attempt to Impose

An effort to enforce or apply rules, decisions, or views upon others, often without their consent.