A Teleological Theory May Find Unacceptable That Any Competent Employee

question 90

True/False

A teleological theory may find unacceptable that any competent employee loses his job,even if the layoff's effect is to reduce prices to consumers and increase profits.

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Sunk Cost

A cost that has already been incurred and cannot be recovered or changed.

Period Cost

Expenses on the income statement that are not directly tied to the production of goods, including sales, administration, and other overhead costs.