Which of the Following Is an Example of the Free-Rider

question 68

Multiple Choice

Which of the following is an example of the free-rider problem?

• A) The larger an organization grows, the more it will subsidize transit passes for its workers, creating financial issues if not all workers agree to take transit.
• B) The larger an organization grows, the more some members might believe they can benefit from the organization without having to contribute increasingly to it.
• C) As an organization downsizes, some members might not believe they can benefit from the organization without having to contribute increasingly to it.
• D) As an organization downsizes, some members might believe they can benefit from the organization without having to contribute increasingly to it.
• E) As an organization grows, some members might not believe they can benefit from the organization without having to contribute increasingly to it.

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Definitions:

Actual Hours

The real number of hours worked by employees, often used in comparing to budgeted or standard hours for performance analysis.

Standard Hours

The set amount of time expected for a task or job to be completed, often used in planning and efficiency analysis.

Units Produced

The total number of finished items or products created by a production process or manufacturing operation.

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs that management could control.