A Congressman Who Enthusiastically Supports Subsidies for Home Heating Oil

question 95

Multiple Choice

A congressman who enthusiastically supports subsidies for home heating oil but opposes regulation to control its price because his family owns a heating-oil distributorship is basing his policy preferences on

• A)personal interests.
• B)electoral ambitions.
• C)institutional ambitions.
• D)environmental interests.
• E)illegal ambitions.

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Definitions:

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Machine Hours

A measure of the amount of time a machine is operated, used in accounting to allocate manufacturing overhead costs.

Cost Driver

A factor that causes a change in the cost of an activity, essentially determining the level of expense incurred in producing a product or service.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.