Lori Moved into a New House and Was Supposed to Get

question 114

Multiple Choice

Lori moved into a new house and was supposed to get her phone connected in August, but hurricane Sandy struck the day a serviceman was supposed to hook it up. As a result, she was not able to get phone service until several months later because there was so much devastation from the hurricane. Lori was not angry because she realized that the phone company did not have any influence over the weather or the extent of the destruction it caused. Which element of attribution theory does this illustrate?

• A) expectations
• B) confirmation
• C) control
• D) locus

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Definitions:

Margin Of Safety

The excess of budgeted (or actual) dollar sales over the break-even dollar sales.

Variable Expenses

Expenses that fluctuate based on the level of a company's operations.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Net Income

The sum of a company's income once all costs and taxes are subtracted from its total revenue.