A Group of Six College Students Observe a Fellow Student

question 197

Multiple Choice

A group of six college students observe a fellow student stumble and fall down a flight of stairs. No one checks to see if the student needs help. Which of the following statements BEST illustrates diffusion of responsibility?

• A)"I didn't want to embarrass the student who fell by making a big deal about it."
• B)"I was pretty far away when it happened."
• C)"I don't know first aid."
• D)"I thought someone else would go help."

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Definitions:

Absorption Costing

A method of accounting that encompasses all costs associated with manufacturing (such as direct materials, direct labor, as well as both variable and fixed overhead expenses) in the pricing of a product.

Variable Costing

An accounting method that includes only variable costs—costs that change with production levels—in the calculation of unit cost.

Standard Costs

Estimated costs associated with manufacturing a product or providing a service, used for budgeting and performance evaluation.

Absorption Costing

An approach to accounting that incorporates all costs associated with manufacturing, including direct materials, direct labor, and all overhead costs, both variable and fixed, into the price of a product.