A Key Limitation of the Experimental Method Is That It

question 80

Multiple Choice

A key limitation of the experimental method is that it

• A)cannot be used to identify cause-and-effect.
• B)is very expensive.
• C)cannot be used to assess many interesting questions due to ethical reasons.
• D)does an excellent job of explaining real-world experience,but does not do a good job of explaining what happens in the laboratory.

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Definitions:

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business, not including production costs.

Variable Expense

Expenses that change in proportion to the activity of a business.

Fixed Expense

Costs that do not vary with the level of production or sales, such as rent or salaries.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to products based on an activity base, such as machine-hours or direct labor-hours, reflecting changes in cost with production volume.