A Grocery Store Has a Scale in the Produce Department

question 127

Multiple Choice

A grocery store has a scale in the produce department that consistently indicates that all fruits and vegetables placed on it weigh 32 pounds.This scale is a ____ measure of weight,but it is not a ____ measure of weight.

• A) reliable;valid
• B) valid;reliable
• C) valid;standardized
• D) standardized;reliable

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Definitions:

Out-of-pocket Cost

Expenses that are paid out directly and result in a financial outlay.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Operating Capacity

The maximum output that a company can produce under normal circumstances over a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.