Compensation is an important aspect of effective customer service recovery strategies. The goal of compensation is to address the customer's loss or inconvenience and to restore their trust and loyalty.
It is important to note that compensation should not be provided only when a customer demands it, as this can lead to negative perceptions of the company's customer service.
The compensation provided should ideally exceed the customer's loss or inconvenience, in order to create a positive impression and increase the likelihood of customer loyalty.
Additionally, customers should feel that the organization has taken responsibility for the issue and has suffered an equal loss, demonstrating that the company values its business and is committed to resolving its concerns.
Overall, effective compensation strategies can help organizations build and maintain positive customer relationships, which can have a significant impact on their bottom line.
To learn more about “compensation” refer to the https://brainly.com/question/30157900
#SPJ11
Why should managers worry about product overcosting or undercosting? A. Averaging can result in inaccurate and misleading cost data. As such, companies may overinvest in products that have been overcosted, and underinvest in products that have been undercosted. B. Overcosting may result in competitors entering a market and taking market share for products that a company erroneously believes are low-margin or even unprofitable. Undercosting may result in companies selling products on which they are in fact losing money, when they erroneously believe them to be profitable. C. Overcosting products may lead to sales that acutally result in losses because the sales may bring in less revenue than the cost of the resources they use. Undercosting products may lead to the loss market share to competitors selling similar products. D. If prices of products are determined by the market based on co
Answer:
Overcosting may result in competitors entering a market and taking market share for products that a company erroneously believes are low-margin or even unprofitable. Undercosting may result in companies selling products on which they are in fact losing money, when they erroneously believe them to be profitable.
Explanation:
The manager would worry withe overcosting or understanding of product as the overcosting would be done when the competitors are entered in the market and they took the market share so that the company could trust that they are less margin while on the other hand undercosting means the company that sells the product also at the same time they are losing the money when they trust to be profitable
If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin ratio is closest to?
To determine the contribution margin ratio, we need additional information regarding the variable costs associated with the sales volume. The contribution margin ratio is calculated by dividing the contribution margin (sales revenue minus variable costs) by the sales revenue.
However, based on the given information, we can still calculate the break-even point, which is the sales volume needed to cover all fixed costs. The break-even point can be calculated by dividing the fixed costs by the contribution margin ratio.Break-even point = Fixed costs / Contribution margin ratio In this case, the fixed costs are $55,900, and the break-even sales volume required is $190,000.
$190,000 = $55,900 / Contribution margin ratio
To find the contribution margin ratio, we can rearrange the equation:
Contribution margin ratio = $55,900 / $190,000
By dividing $55,900 by $190,000, we find that the contribution margin ratio is approximately 0.2942, or 29.42% (rounded to two decimal places).
Please note that without the specific information on variable costs, we cannot calculate the contribution margin ratio accurately.
Learn more about information here
https://brainly.com/question/1276995
#SPJ11
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $27,000. Product Y weighs 35 pounds and product Z weighs 65 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z.
PLEASE SHOW WORK IF POSSIBLE
The joint cost allocated to product Y is $94.50 per pound and to product Z is $175.50 per pound.
How to find?To allocate joint costs to products Y and Z based on physical measure of output, we can use the weight method. The total weight of both products is 100 pounds (35 + 65). The joint cost per pound is $27,000 / 100 pounds = $270 per pound.
To allocate joint costs to product Y:
Weight of product Y / Total weight of both products x Joint cost per pound = 35/100 x $270 = $94.50 per pound
To allocate joint costs to product Z:
Weight of product Z / Total weight of both products x Joint cost per pound = 65/100 x $270 = $175.50 per pound
Therefore, the joint cost allocated to product Y is $94.50 per pound and to product Z is $175.50 per pound.
This method assumes that both products are of equal quality and that weight is an appropriate measure of the relative value of each product.
To know more on Joint Cost visit:
https://brainly.com/question/28257936
#SPJ11
Difference between training and exercise
Explanation:
For athletes and people with a definite performance objective in mind, Training is necessary. Training is physical activity performed for the purpose of satisfying a long-term performance goal, and is therefore about the process instead of the workouts themselves.
Answer:
Training is physical activity performed for the purpose of satisfying a long-term performance goal, and is therefore about the process instead of the workouts themselves
Exercise is a subset of physical activity that is planned, structured, and repetitive and has as a final or an intermediate objective the improvement or maintenance of physical fitness. Physical fitness is a set of attributes that are either health- or skill-related.
Explanation:
have a goo day/night
may i please have a branlliest
Consider the following proposition: "Bob performing his own dentistry is sufficient for Costa Rica to be in Spain." Which of the following is (are) the contrapositive of the above proposition? Note: There may be more than one correct answer. However, points will be deducted for selecting incorrect choices/options. A) "Costa Rica not being in Spain is sufficient for Bob to not perform his own dentistry." B) "If Bob does not perform his own dentistry, then Costa Rica is not in Spain." C) "If Costa Rica is not in Spain, then Bob does not perform his own dentistry."D) "Bob not performing his own dentistry is sufficient for Costa Rica to not be in Spain." E) "Costa Rica is in Spain or Bob does not perform his own dentistry.
The contrapositive of a proposition has the same logical meaning as the original proposition, but with the subject and predicate terms switched and negated. Let's analyze the options:
A) "Costa Rica not being in Spain is sufficient for Bob to not perform his own dentistry." This is not the contrapositive because the subject and predicate terms are not switched. It is the inverse of the original proposition.
B) "If Bob does not perform his own dentistry, then Costa Rica is not in Spain." This is the contrapositive of the original proposition. The subject and predicate terms are switched and negated.
C) "If Costa Rica is not in Spain, then Bob does not perform his own dentistry."
This is the inverse of the original proposition, not the contrapositive. The subject and predicate terms are switched, but they are not negated.
D) "Bob not performing his own dentistry is sufficient for Costa Rica to not be in Spain."
This is the contrapositive of the original proposition. The subject and predicate terms are switched and negated.
learn about proposition
https://brainly.com/question/30895311?
#SPJ11
What are the qualifications to become a primary teacher and a secondary? Write them.
Answer:
The eligibility requirement for a Primary Teacher in a Government School is Senior Secondary School certificate or Intermediate or its equivalent, and Bachelor of Elementary Education (B. El. Ed.), or Diploma or certificate in basic teachers' training of not less than two years duration.
Why are aircraft carriers a thing? Why can’t there just be an airport on land only for military aircraft?
Answer:
Aircraft carriers are a vital component of modern naval warfare because they allow for military aircraft to operate far from land bases, providing a mobile platform for conducting a wide range of military operations.
Unlike land-based airports, aircraft carriers are not limited to fixed locations and can be moved to strategic locations in response to changing military requirements. This mobility provides significant advantages, as carriers can be deployed to various regions of the world, allowing for rapid response times and the ability to project power over long distances.
Additionally, aircraft carriers have the ability to launch and recover a large number of aircraft in a short amount of time, providing a significant force multiplier for military operations. They can be used for a variety of missions, including air support for ground troops, strike missions against enemy targets, and reconnaissance and surveillance operations.
Furthermore, an aircraft carrier can also serve as a mobile command center, allowing military commanders to conduct operations from the ship's command and control center, which provides an added level of flexibility and operational capability.
In summary, while land-based airports are certainly useful for military operations, aircraft carriers provide unique advantages that make them an essential part of modern naval warfare.
Explanation:
I had this exact question. This should get you a 100% grade.
Create a comic strip, poster, or other visual art presentation that illustrates the forces of supply and demand, just as the dance routine in Supply and Dance, Man illustrated it using
the example of selling canes. Invent a fictitious business and illustrate how the business's successes shift supply and demand. Identify the supply and demand factors at play.
Answer:
demand is equal to 1000 and factors is equal to 5000
a firm's cash flow from investing activities includes: question 18 options: a) cash received from the sale of a plant asset b) cash received from the rendering of services to customers c) cash paid to retire bonds payable d) cash paid as dividends
The cash flow from investing activities of a firm includes cash received from the sale of a plant asset , cash paid to retire bonds payable , and cash paid as dividends . (A,C,D)
Cash received from the rendering of services to customers (Option B) is not included in the cash flow from investing activities.
Cash flow from investing activities is a statement of all the changes in the company's cash position from investments made.
Cash received from the rendering of services to customers would not affect the company's investments and therefore is not included in this statement.
To know more about cash flow click on below link:
https://brainly.com/question/29768594#
#SPJ11
Coronado Corporation had the following selected transactions in the month of March. The company adjusts its accounts monthly. 1. The company has a 6\%, $9,000 bank loan payable due in one year. Interest is payable on the first day of each following month and was last paid on March 1. 2. At the end of March, the company earned $240 interest on its investments. The bank deposited this amount in Coronado's cash account on April 1. 3. Coronado has five employees who each earn $190 a day. Salaries are normally paid on Mondays for work completed Monday through Friday of the previous week. Salaries were last paid on Monday, March 29 . March 31 falls on a Wednesday this year. Salaries will be paid next on Monday, April 5. 4. At the end of March, the company owed the utility company $590 and the telephone company $180 for services received during the month. These bills were paid on April 10. (Hint: Use the Utilities Expense account for the utility and telephone services.) 5. At the end of March, Coronado has earned service revenue of $3,030 that it has not yet billed. It bills its clients for this amount on April 4. On April 30, it collects $1,840 of this amount due. (a) For each of the above situations, prepare the adjusting journal entry required at March 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Coronado Corporation had the following selected transactions in the month of March. The company adjusts its accounts monthly.1. The company has a 6\%, $9,000 bank loan payable due in one year. Interest is payable on the first day of each following month and was last paid on March
1.Adjusting entry at the end of March 31: Interest Expense: = $45 ($9,000 * 6% * 2/12)Interest Payable: = $45 ($9,000 * 6% * 1/12)2. At the end of March, the company earned $240 interest on its investments. The bank deposited this amount in Coronado's cash account on April 1.No adjustment is required at March 31 because it is cash received in April.3. Coronado has five employees who each earn $190 a day. Salaries are normally paid on Mondays for work completed Monday through Friday of the previous week. Salaries were last paid on Monday, March 29 . March 31 falls on a Wednesday this year. Salaries will be paid next on Monday, April 5.Adjusting entry at the end of March 31: Salaries Expense: = $570 ($190 * 3 days)Salaries Payable: = $5704. At the end of March, the company owed the utility company $590 and the telephone company $180 for services received during the month.
These bills were paid on April 10. (Hint: Use the Utilities Expense account for the utility and telephone services.)Adjusting entry at the end of March 31:Utilities Expense: = $590Telephone Expense: = $180Utilities Payable: = $590Telephone Payable: = $1805. At the end of March, Coronado has earned service revenue of $3,030 that it has not yet billed. It bills its clients for this amount on April 4. On April 30, it collects $1,840 of this amount due.Adjusting entry at the end of March 31:Accounts Receivable: = $3,030Service Revenue: = $3,030No adjusting entry is required on April 30 because it is cash received in April.
Thus, it does not affect the March 31 adjusting entry. The journal entries required for the above transactions are as follows: Particulars Debit Credit Interest Expense$45Interest Payable$45Salaries Expense$570Salaries Payable$570Utilities Expense$590Utilities Payable$590Telephone Expense$180Telephone Payable$180Service Revenue$3,030Accounts Receivable$3,030
To know more about Coronado Corporation
Visit https://brainly.com/question/33183020
#SPJ11
Which of the following is a “DON’T” regarding scannable résumés?
a.
Print on white paper with black ink
b.
Use special characters like italics and underlining
c.
Add spaces before and after slashes
d.
Use a clean and neat overall format
Please select the best answer from the choices provided
A
B
C
D
Answer:
B
Explanation:
took it on edge2020 :)
When it comes to scannable resumes, it is not recommended that you b. Use special characters like italics and underlining.
How should scannable resumes be designed?Because they are to be scannable, they are not to have complicated characters that might be unscannable such as special characters and underlining.
They should be printed on white paper using black ink only, and should have a format that is best described as being neat and clean.
Find out more on scannable resumes at https://brainly.com/question/1383483.
Before sending a résumé, you should always checked with the employer to see what operating system they use. please select the best answer from the choices provided t f
Answer:
This is true.
Explanation:
Edg. 2022
Answer:
t
Explanation:
trust
How many programs does GA technology have related to stem programs
GA Technology currently offers four STEM programs: Code & Design, Web Development, Data Science, and UX Design.
What are programs?Generally, Programs are sets of instructions that tell a computer what to do. They are written in programming languages such as C, C++, Java, Python, Ruby, and HTML. These instructions tell the computer how to perform tasks such as displaying output, manipulating data, and interacting with users. Programs are used to create applications, websites, and other software.
Read more about programs
https://brainly.com/question/11023419
#SPJ1
4. Which of the following most accurately describes the change in average weekly earnings since 1980?
O
A. Average weekly earnings have dropped for everyone.
B. Average weekly earnings have risen for college-educated workers only.
O
C. Average weekly earnings have risen for everyone.
D. Average weekly earnings have soared for people without college degrees.
Answer:
A
Explanation:
the average weekly earnings has dropped for everyone
What is the difference between the
Standard Unemployment Rate and the
Real Unemployment Rate?
Answer:
The U-3 is the rate most often reported in the media. For the U-3 rate, the Bureau of Labor Statistics only counts people without jobs who are in the labor force. The U-6, or real unemployment rate, includes the underemployed, the marginally attached, and discouraged workers.According to Santangelo, “the difference between the official rate of unemployment (14.7 percent) and what's referred to as U-6 (22.8 percent), which is much closer to the truth, is generally 10 percent.” The April jobs report showed the difference to be slightly less but still significant.
Explanation:
j.c. penney sells a timex watch for $139.99 that cost $89.97. j.c. penney's percent of markup based on the selling price is:
J.C. Penney sells a Timex watch for $139.99 that cost $89.97. J.C. Penney's percent of markup primarily based on the selling price is: ($50.02/$139.99 = 35.73%.)
What does JCPenney sell?J. C. Penney Co., Inc. is a holding company, which thru its subsidiary, J. C. Penney Corporation, Inc., engages in the promoting merchandise and offerings to consumers thru its branch stores and website. It presents appliances, handbags, shoes, jewelry, shoes, and clothes.
How is JCPenney doing financially 2022?It now has 650 shops throughout the majority of U.S. states and Puerto Rico. JCPenney estimates its income for the 2022 fiscal 12 months will whole $9 billion, up 10% from 2021 however down 16% from 2019, according to the Wall Street Journal.
Learn more about j.c. penney sells here;
https://brainly.com/question/13808542
#SPJ1
29.What are some potential difficulties that you might encounter when doing business in the Chinese market?
30.What actions could your company take to help improve your opportunities for success?
Question 10 (5 points)
Two prescreening tools for job candidates are the resume and the
employment essay.
advertisement.
application.
letter of recommendation.
The correct answer is C. Application
Explanation:
When employers pre-screen job candidates they verify basic information about candidates such as background, education, skills, experience, etc. to determine if a candidate is suitable for a job and he/she should be interviewed or continue in the process of selection for the job.
In this context, the two main tools used by employers are the resume and the job application. These two documents provide information about the candidate's education, experience, skill, and similar but in the case of the application the information es concise and very specific, while resumes are more detailed and the candidate can include as much information as she/he wants. Thus, the two prescreening tools for job candidates are the resume and the application.
Answer: Application
Explanation: I just took the test
Hope this helps.
Five years ago Tosev Inc. issued 30-year, $1,000 par value, semi-annual coupon bonds with a coupon rate of 9.10 percent. The bonds originally sold at a price of $1,010.32 per bond. Currently, those bonds have a market price of $1,118.15 per bond. The Chief Financial Officer of Tosev is currently considering issuing new bonds. These bonds will have a par value of $1,000, semi-annual coupon payments, a term of 25 years and a coupon rate of 8 percent. Due to differences in the legal provisions of the bonds, the Chief Financial Officer estimates that the yield to maturity on the new bonds will be one percent higher than the current yield to maturity on the old bonds. Based on the Chief Financial Officer's estimate, what would be the price per bond of the new bonds today?
A. $ 817.44
B. $ 896.67
C. $ 901.19
D. $1,000.00
E. $1,118.15
Which of the following statements is most correct?
A. If a bond's yield to maturity exceeds its annual coupon rate, then the bond will be trading at a premium.
B. If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero coupon bond.
C. If a coupon bond is selling at par, its current yield equals its yield to maturity. (Hint: a bond's current yield equals annual coupon payment divided by current price).
D. Both a and c are correct.
E. None of the answers above is correct.
---------------------Explanation:
To provide excellent customer service to those in the electrical industry through the use of high-tech solutions is an example of a:__________. A) work structure. B) goal C) mission D) code of conduct E) vision
Answer:
C) mission
Explanation:
The statement provided in the question is an example of the company's mission. A mission statement is a short statement explaining why an organization exists, and what it is intending to accomplish as its overall goal. Many times this statement may also include what kinds of products or services it provides, its primary customers or market, and its geographical region of operation. In this statement, they provided their overall goal, target market, and their products.
A three-year bond with a current yield of 10% per annum and a duration of 2.76 years, when compared with a four- year bond with a current yield of 12% per annum and duration of 3.43 years, will _______ when interest rates rise.
a. have a greater fall in price
b. have a smaller fall in price
c. have a smaller rise in price
d. have the greater interest rate exposure
When interest rates rise, the three-year bond will experience (a) a greater fall in price compared to the four-year bond due to its lower duration.
Duration is a measure of the sensitivity of bond prices to changes in interest rates. The higher the duration, the more sensitive the bond is to interest rate changes. In this case, the four-year bond has a longer duration (3.43 years) compared to the three-year bond (2.76 years). When interest rates rise, bond prices typically fall. The bond with a longer duration (four-year bond) will experience a relatively smaller fall in price because of its higher sensitivity to interest rate changes.
On the other hand, the bond with a shorter duration (three-year bond) will experience a greater fall in price as its lower duration implies lower sensitivity to interest rate changes. Therefore, the correct answer is (a) the three-year bond will have a greater fall in price when interest rates rise. Hence, investors need to consider the duration of bonds when assessing their exposure to interest rate changes. Bonds with longer durations are more exposed to interest rate risk and may experience larger price fluctuations when interest rates change.
Learn more about interest rates here:
https://brainly.com/question/30907196
#SPJ11
the most common use of consumer loans are to purchase automobiles. (True or False)
Consumer loans serve various purposes beyond automobile purchases, including education, home renovations, debt consolidation, and personal expenses.
The statement that the most common use of consumer loans is to purchase automobiles is false. While consumer loans can indeed be used for purchasing automobiles, they serve a much broader range of purposes.
Consumer loans are a type of credit provided by financial institutions to individuals for personal use.
Consumer loans are commonly used for various purposes such as financing education, covering medical expenses, funding home renovations, consolidating debt, and meeting other personal financial needs.
These loans provide individuals with the flexibility to manage their personal expenses and fulfill their financial goals.
While purchasing automobiles is a popular use for consumer loans, it is not necessarily the most common use. The demand for consumer loans varies depending on individual needs, economic conditions, and market trends.
People may also seek consumer loans for other purposes such as vacations, weddings, or emergency expenses.
In conclusion, while consumer loans can be used to purchase automobiles, they are not limited to this purpose.
Consumer loans serve a broader range of needs and provide individuals with the financial flexibility to address various personal expenses and goals.
learn more about financial institutions here
https://brainly.com/question/29641948
#SPJ11
Scenario: NewTel, Inc.
NewTel is a telephone company with a policy of filling positions internally, through promotions, rather than hiring from outside. Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas. Consequently, almost all of the company’s 14 senior executives joined the company over 20 years ago in junior engineering positions. There is increasing pressure on NewTel to become more marketing and service-oriented. As a result, four people were hired last year from consumer products and retail firms to fill new senior executive positions in marketing and service management. The external hires were necessary because current employees were not sufficiently qualified. Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities. The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment. The conflict episodes are viewed by both sides as personal attacks rather than attempts to resolve the problem.
The four new hires’ attempt to have the company put more money into marketing and customer services instead of technology investment. This is mainly an example of conflict due to:
A. role ambiguity.
B. lack of communication.
C. sequential task interdependence.
D. overt behaviors.
E. goal incompatibility.
Answer:
E. goal incompatibility.
Explanation:
Analyzing the scenario above, it is possible to see that the cause of the conflict is due to incompatibility of goals, that is, there are different objectives and goals between the teams and organizational departments, which causes a lack of consensus that culminates in the conflict.
This is a negative situation for the company, which is a set of systems that must operate in favor of the same objectives and goals. in order to listen to all the parties involved, and then start from a principle where everyone feels heard and integrated in the development of organizational goals, creating an environment of trust and positive relationship in the company.
2. When different countries trade commodities and money with one another, we are referring to:
Answer:
We are referring to global economy
"
When shopping for mortgages, what are some things you can do to find a lender and to help decide on a mortgage?
"
weighing factors like customer service, the standing of the lender, and the total cost of the mortgage over its term in addition to the interest rate. Finding a suitable lender and mortgage that fits your financial goals and situation can be made easier if you take the time to shop around, compare options and make an informed choice.
There are a few crucial actions you can take when searching for mortgages in order to locate a lender and make an informed choice. Start by investigating various lenders and contrasting their products, including interest rates, costs, and loan terms. Think about getting referrals from reliable people and speaking with knowledgeable mortgage brokers. To ascertain what you can afford, it's critical to comprehend your own financial situation, including your credit score and budget.
Get several loan quotes, and carefully read the terms and conditions of the loan, including any added fees or penalties. Obtaining pre approval can help you convince sellers of your seriousness. You can find a lender and mortgage that best meets your needs by doing extensive research and taking into account your unique needs.
Learn more about mortgage at:
brainly.com/question/31751568
#SPJ4
what is the ftc recommendation regarding choice as it relates to personally identifiable information (pii)? group of answer choices require robust notice only before pii is collected. require firms to allow consumers to opt-out before pii is collected. make collection of pii illegal. require firms to have consumers affirmatively opt-in before pii is collected.
The FTC's recommendation regarding consumer choice in relation to personally identifiable information is to make it mandatory for businesses to obtain customers' affirmative consent before collecting (pii).
How are personally identifiable (PII) data protected?Store delicate personal data safely when not in use in a closed desk drawer, filing cabinet, or other secure container. When using sensitive PII, make sure to keep it in a secure location that is only accessible to those with a need to know. At all costs, sensitive PII must never be faxed.
Personal identity numbers include things like Social Security Numbers (SSN), Passport Numbers, Driver's License Numbers, Taxpayer Identity Numbers, Patient Identification Numbers, Financial Account Numbers, or Credit Card Numbers. For a personal address, provide a street address or email address. personal interaction
To know more about personally identifiable Information, refer;
https://brainly.com/question/4997276
#SPJ4
Which policy covers an organization against losses which might arise as a result of debtors failure to pay their debts
Answer:
A credit insurance policy covers an organization against losses that might arise as a result of debtors failing to pay their debts. Credit insurance is designed to protect a business against the risk of nonpayment by its customers or clients. It can cover a wide range of risks, including commercial and political risks, and can be customized to meet the specific needs of an organization. Credit insurance can be an important tool for businesses that rely on credit to fund their operations or that have a large number of customer accounts. It can help to mitigate the financial impact of unpaid debts and reduce the risk of financial losses for the business.
Which factors can affect a stock's price? Check all that apply.
RE
market performance
the company's financial health
the quantity products produced
location of the company
the economy
Lisi Crichton operates a variety store. Her brother does custom welding and made some racks to hold videos. Lisi gave her brother $5,000 cash and did not get a bill. A similar rack was on display at a department store for $1,000. You are told to book an expense on the company financial statement for $5000. What will you book the amount for?
Answer:
$1,000
Explanation:
Fixed assets must be recorded at historic cost or purchase value. Their valuation is not affected by changes in market values, e.g. land might appreciate over time, but its historic cost will be used for accounting purposes.
In this case, Lisi doesn't have a bill to show the price of the rack, and since she paid in cash, she has no way of proving what she actually paid for it. In this case, in order to record the purchase of the rack you must use the fair market value of similar racks.
Imagine if someone could just say that they purchased things at X price but didn't get a bill, soon people would be recording buying pencils at $500 each because they are gorgeous and perfectly crafted.
Prime cost is:
a. indirect materials cost and indirect labor cost.
b. direct materials cost and direct labor cost.
c. direct labor cost and overhead cost.
d. selling cost and administrative cost.
Explanation:
b. Direct materials cost and direct labor cost.
Prime cost refers to the direct costs of production, which includes direct materials cost (the cost of raw materials used in production) and direct labor cost (the wages and benefits paid to workers who directly produce the product). This is in contrast to indirect costs, such as indirect materials (supplies used in the production process), indirect labor (salaries and benefits paid to support staff), and overhead costs (indirect expenses incurred in running a business).