Tom Dash Works as a Researcher Studying the Effects of Alcohol

question 27

Multiple Choice

Tom Dash works as a researcher studying the effects of alcohol and drug abuse at a large research university on the east coast. The alcohol center's mission statement reads, "Our mission is to conduct, coordinate, and promote basic and clinical research on the causes, prevention, and treatment of alcoholism and alcoholic disease." Looking forward, which of the following statements are you likely to agree with?

• A) Tom's work, although impressive, will not have any short-term or long-term effect on the cost of labor in the U.S.
• B) The U.S. has seen significant declines in alcohol and drug-related issues in the workplace. Tom would better serve the business world by working on AIDS-related diseases.
• C) Illegal drug use is more of a problem than alcohol in terms of the number of work-related accidents that these problems cause. Tom should know, though, that the baby boomers are the major drug users, and they are retiring.
• D) Tom Dash's work is greatly needed by business and industry. Alcohol and drug use continue to be on the rise and present serious work-related costs to businesses across almost all industries.

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Definitions:

Cost of Goods Sold

Expenses directly incurred from producing goods a company sells, such as costs for materials and labor.

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of a product.

Indirect Material

Materials used in the support of the production process but not directly a part of the finished product.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production of goods or services.