Rachel's Parents Used to Pay Her an Allowance Every Week

question 53

Multiple Choice

Rachel's parents used to pay her an allowance every week to feed the cats and to do a few other chores around the house. However, once her mother lost her job, her parents stopped giving her an allowance. Although Rachel quit making her bed every morning, she still continued to feed the cats. Which of the following best explains why Rachel continues to feed the cats?

• A) With the intrinsic reward, the execution of the task relies on external motivation.
• B) Without the intrinsic reward, the execution of the task relies on external motivation.
• C) Without the extrinsic reward, the task itself is eliminated.
• D) Without the extrinsic reward, the execution of the task relies on internal motivation.
• E) With the extrinsic reward, the execution of the task relies on internal motivation.

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Definitions:

Conversion Costs

The combination of direct labor costs and manufacturing overhead costs that are incurred to convert raw materials into finished goods.

Weighted Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.

Direct Labor

Direct labor refers to the work of employees directly involved in the production of goods or services, often considered variable costs.

Equivalent Units

A method used in managerial accounting to calculate the number of complete units that could have been produced given the total amount of materials and effort expended.