Two of the Decentralized Divisions of Gamberi Electronics Corporation Are

question 284

Multiple Choice

Two of the decentralized divisions of Gamberi Electronics Corporation are the Plastics Division and the Components Division. The Plastics Division sells molded parts to both the Components Division and to customers outside the corporation.Assume that the Plastics Division is currently operating with idle capacity. Also assume that the Components Division wants to purchase from Plastics all of the additional parts that could be made with this idle capacity. In order to increase its current level of profitability, the Plastics Division should accept any transfer price on these additional parts that is above the:

• A) variable cost of the additional parts.
• B) full (absorption) cost of the additional parts.
• C) variable cost of the additional parts plus the lost contribution margin on all units that could no longer be sold to customers outside the corporation.
• D) full (absorption) cost of the additional parts plus the lost contribution margin on all units that could no longer be sold to customers outside the corporation.

Recognize how discrimination and generalization occur in classical conditioning.

Understand how attitudes and behaviors can be influenced through classical conditioning.

Identify the components and processes involved in drug tolerance as an example of classical conditioning.

Understand the distinctions between classical and operant conditioning.

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Definitions:

Paasche Price Index

An economic measure that calculates the change in the cost of acquiring a given basket of goods and services in the current year compared to a base year, using the current year's prices.

Laspeyres Index

A price index used to measure the relative change in the price of a fixed basket of goods and services over time, using the quantities of a base period.

Prices

The monetary value assigned to a product or service, determining how much it costs to buy.

Bundle

A combination of various goods and services selected by consumers, used in economics to analyze choices and preferences.