ABC Engineering Just Purchased a New Machine

question 71

Multiple Choice

ABC Engineering just purchased a new machine. All of the following are examples of incremental cash flows EXCEPT

• A) freight charged to ship the machine.
• B) developmental costs to determine which machine would best work with their unique process.
• C) increase in electric bill to run the machine.
• D) reduction in maintenance expense associated with the new machine.

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Definitions:

Stereotype

A fixed, oversimplified, and often inaccurate idea of the characteristics that typify a person, group, or thing, which can influence attitudes and behaviors towards them.

Cognitive Generalization

The extension of learned behavior or response to situations that are similar, but not identical, to the original learning environment.

Extremity Bias

The tendency for people to remember and give disproportionate weight to the most extreme examples or experiences.

Group Attribution Error

The tendency to erroneously attribute the behavior or attitudes of individuals within a group to the group as a whole.