Functional Fixedness Refers to

question 122

Multiple Choice

Functional fixedness refers to

• A) continued use of problem solving strategies that have worked in the past.
• B) arriving at a particularly insightful solution to a problem.
• C) focusing on information that is irrelevant to the solution of the problem.
• D) not seeing a new function for a familiar object.

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Definitions:

Contribution Margin

The residual amount from sales income post the subtraction of variable costs, signifying its role in offsetting fixed expenses and creating profit.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Flexible Budget

A flexible budget adjusts based on actual revenue levels or other external factors, allowing for more dynamic and responsive financial planning.

Variable Costs

Costs that change in proportion to the level of activity or volume of production.