The Tendency for People to Behave Differently When They Know

question 64

Multiple Choice

The tendency for people to behave differently when they know they are being studied is known as the

• A) Hawthorne effect.
• B) Taylor effect.
• C) Type II effect.
• D) induced motivation effect.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Total Fixed Costs

Expenses that do not change with the level of production or sales over a short period, including rent, insurance, and salaries.

Activity Level

In cost accounting, this refers to the volume of production or operations, impacting variable costs and potentially influencing budgeting and performance measures.

Contribution Margin

The contribution margin is the difference between sales revenue and variable costs, showing how much revenue contributes to fixed costs and profit.