Clayton Is Looking for a House to Buy

question 71

Multiple Choice

Clayton is looking for a house to buy. As he looks at different houses, he weighs the different features that each house offers. For instance, while he prefers a brick house, he saw a wooden house that had a better floor plan, a reasonable price, and was in a good school district. Clayton decides that the wooden house is a better buy despite not being made of brick. His decision-making style involved the use of a ________.

• A) means-end analysis
• B) noncompensatory model
• C) compensatory model
• D) functional mind set

---

Definitions:

Activity at Capacity

The level of operational activity that a company can achieve using its current resources without incurring additional costs.

Machine-Hours

A measure of the amount of time machines are used in the production process, often related to the allocation of manufacturing overhead.

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services, used as a basis for assigning labor costs to products.

Forming

A manufacturing process that involves shaping and combining materials to create a product.