A Company Which Manufactures Custom-Made Machinery Routinely Incurs Sizable Telephone

question 110

Multiple Choice

A company which manufactures custom-made machinery routinely incurs sizable telephone costs in the process of taking sales orders from customers. Which of the following is a proper classification of this cost?

• A) Product cost
• B) Period cost
• C) Conversion cost
• D) Prime cost

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Definitions:

Fixed-ratio Schedule

A fixed-ratio schedule is a type of operant conditioning reinforcement schedule where a response is reinforced only after a specified number of responses, leading to a high, steady rate of responding.

Variable-ratio Schedule

In operant conditioning, it is a reinforcement strategy where a response is rewarded after an unpredictable number of responses, leading to high and steady response rates.

Successive Approximation

A method used in behavior therapy to gradually achieve a target behavior through small steps towards the goal.

Fixed-interval Scheduling

A type of operant conditioning reinforcement schedule where rewards are given after a fixed time period, causing a scalloped pattern of response rates.