The Tendency to Attribute Behavior to Stable, Internal Characteristics Has

question 20

Multiple Choice

The tendency to attribute behavior to stable, internal characteristics has been called:

• A) situational attribution
• B) fundamental attributional error
• C) personal preference thinking
• D) naïve psychology

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Residual Income

The amount of income that exceeds the minimum rate of return on a project or investment.

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment to make it worthwhile, considering the risk.

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, used to cover fixed costs and provide profit.