A Certain Company Is Known to Be Profitable, but for Years

question 28

Multiple Choice

A certain company is known to be profitable, but for years by-products from its plant have been polluting a nearby stream.The company management has decided that it would not be cost effective to clean up the stream.This is an example of

• A)Theory X.
• B)Theory Y.
• C)contingency theory.
• D)bureaucratic rigidity.
• E)externalizing costs.

Understand the process and application of the high-low method to calculate fixed and variable costs.

Learn the application of the least-squares regression method for estimating fixed and variable costs.

Interpret and analyze contribution margin income statements.

Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio.

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Definitions:

Outcome Simulation

The mental process of imagining the outcome of a particular action or decision.

Concept Formation

The process of categorizing information into meaningful groups based on shared features or attributes.

Wolfgang Köhler

A German psychologist, one of the founders of Gestalt psychology, which emphasizes the human capacity to perceive patterns in the visual world.

Native Language

The first language a person learns at home in childhood and is usually fluent in; also referred to as mother tongue or first language.