While Studying Human Efficiency Using a Rope and a Dynamometer

question 30

Multiple Choice

While studying human efficiency using a rope and a dynamometer, Ringelmann found that:

• A) people got annoyed because Ringelmann was a social loafer.
• B) the dynamometer broke when eight people were pulling the rope.
• C) each person pulled a little less as others joined in.
• D) each person pulled a little more as others joined in.

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Definitions:

Period Cost

Expenses that are not directly tied to production activities and are expensed in the period in which they occur.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and contribute to profit.

Variable Costing

An accounting method that only assigns variable costs to inventory, treating fixed costs as expenses in the period they are incurred.

Variable Costing

An accounting practice that only factors in variable production expenses (like direct materials, direct labor, and variable manufacturing overhead) into the cost of goods.