Discuss Three Types of Response Bias. Give Examples

question 45

Essay

Discuss three types of response bias. Give examples.

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Definitions:

Absorption Costing

A financial method that integrates all production-related costs — direct materials, direct labor, and both variable and fixed overheads — into the cost calculation of a product.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to operating the manufacturing facilities.

Period Expenses

Operating expenses that are incurred by a business within a specific time period, not directly tied to the production process.

Absorption Costing

A financial recording technique that incorporates all production-related charges, including direct materials, direct labor, along with both changeable and steady overhead expenses, into the product's cost.