The Tendency to Attribute Personal Success to Personal Factors (Skill,ability,or

question 90

Multiple Choice

The tendency to attribute personal success to personal factors (skill,ability,or effort) and to attribute failure to factors outside oneself is known as the:

• A)assumed-similarity bias.
• B)halo effect.
• C)self-serving bias.
• D)fundamental attribution error.

Understand how changes in accounting principles and methods are reported.

Grasp the concepts and calculations related to earnings per share and dividend yield.

Understand the purposes of different types of financial analysis (e.g., leverage, profitability).

Recognize the importance and purpose of an audit.

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Definitions:

Total Variable Costs

The sum of all costs that vary directly with the level of production or sales volume, such as materials and labor costs.

Variable Costing Income Statement

An income statement format that only includes variable costs as cost of goods sold and uses contribution margin to analyze profitability.

Absorption Costing Format

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Gross Margin

Gross margin is a company's net sales revenue minus its cost of goods sold, representing the efficiency of a company in managing its direct costs.