A Firm Has Produced the Following Budget for an Activity

question 2

Multiple Choice

A firm has produced the following budget for an activity level of 5,000 units:
Materials : 45,000
Direct labour : 60,000
Salaries : 25,000
Depreciation : 12,000
What would be the total cost for a level of activity of 7,500 units?

• A) £164,500
• B) £194,500
• C) £213,000
• D) £207,000

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Definitions:

Empiricism

A philosophy that emphasizes the role of sensory experience and evidence in the formation of ideas, over the notion of innate ideas or traditions.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, focusing on observable behaviors rather than internal states.

Habituation Technique

A method used in psychology to reduce the reaction to a repeated stimulus over time, demonstrating one of the simplest forms of learning.

Longitudinal Technique

A research design that involves repeated observations of the same variables over a period of time, often years or decades.