Which of the Following Is an Example of the Unit

question 53

Multiple Choice

Which of the following is an example of the unit bias?

• A) buying a second bottle of soda because the store has a "buy one, get one free" sale
• B) adding more sugar to a cup of coffee because it is bitter
• C) asking for a second helping of pasta
• D) eating more chips in one sitting from a "jumbo" bag than a regular size bag

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Definitions:

Indirect Method

A method used in cash flow statements to adjust net income for transactions that do not involve cash, providing a view of cash flow from operating activities.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without recognizing services provided between service departments.

Sales

Revenue generated from goods or services sold by a company.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without considering services provided between service departments.