The Executives at a Factory Learn That to Be Most

question 8

Multiple Choice

The executives at a factory learn that to be most efficient, its employees must work in 12-hour shifts. However, the work is so physically exhausting that most employees quit after a few months. The executives decide that it is more efficient to hire new employees than to reduce the duration of the shifts. What constraint found in our society is this an example of?

• A) consumerism
• B) rationalization
• C) industrialization
• D) efficiency

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Definitions:

Interest on Construction Loan

The interest that accrues on a loan taken out to finance the construction of a building or other project, traditionally capitalized and added to the project's cost base.

Expense Account

A type of account used in accounting to track money spent or costs incurred by a business in its operational activities.

Straight-Line Method

A method of calculating the depreciation of an asset, which evenly spreads the cost of the asset over its useful life.

Residual Value

The estimated salvage value of an asset at the end of its useful life.