A number of costs are listed below. Required: For each item above, indicate whether the cost is direct or indirect with respect to the cost object listed next to it.
1. Wages of carpenters on a home building site; A particular home; Direct 2. Cost of wiring used in making a personal computer; A particular personal computer; Indirect 3. Manager's salary at a hotel run by a chain of hotels; A particular hotel guest; Indirect 4. Manager's salary at a hotel run by a chain of hotels; The particular hotel; Direct 5. Cost of aluminum mast installed in a yacht at a yacht manufacturer; A particular yacht; Direct 6. Monthly lease cost of X-ray equipment at a hospital; The Radiology (X-Ray) Department; Direct 7. Cost of screws used to secure wood trim in a yacht at a yacht manufacturer; A particular yacht; Indirect 8. Cost of electronic navigation system installed in a yacht at a yacht manufacturer; A particular yacht; Direct 9. Cost of a replacement battery installed in a car at the auto repair shop of an automobile dealer; The auto repair shop; Direct 10. Cost of a measles vaccine administered at an outpatient clinic at a hospital; A particular patient; Direct
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One reason for the high wage rates in the United States and other advanced economies is the high productivity of labor in these countries.
A lawsuit seeking compensation for damage from pollution:
A) will ruin any chances the Coase theorem has of working to avoid the situation in the first place. B) is a substitute for bargaining, but an inefficient one. C) is a substitute for bargaining, and it can lead to the efficient solution. D) is preferable to switching the property rights between the parties. E) is how the Coase theorem was meant to work in the first place.
Which of the following is not an example for safeguarding inventory?
A) Storing inventory in restricted areas. B) Physical devices such as two-way mirrors, cameras, and alarms. C) Matching receiving documents, purchase orders, and vendor's invoice. D) Returning inventory that is defective or broken.