Participants Are Faced with the Following Choice: Man (Or Woman)

question 61

Multiple Choice

Participants are faced with the following choice: Man (or Woman) A, who is extraordinarily good-looking and works as a server in a small restaurant with no further ambitions; or Man (or Woman) B, who is average looking, made a fortune selling an invention, and has outstanding prospects as a medical researcher. Who do participants choose?

• A) women are evenly divided between A and B; men overwhelmingly choose A
• B) women overwhelmingly choose B; men have a slight preference for A
• C) women overwhelmingly choose A; men have a slight preference for B
• D) women and men are both evenly divided between A and B

---

Definitions:

Activity-based Costing

A costing methodology that assigns production costs to products or services based on the activities and resources that go into their creation.

Traditional Costing System

A traditional costing system allocates indirect costs to products based on a single measure of activity, such as machine hours or direct labor hours, often not capturing the true costs of complex production processes.

Batch-level Costs

Costs associated with a specific batch of products, including setup costs and quality testing, that are not directly related to the manufacturing of individual items within the batch.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities and resources that go into their production.