A Parent That Pays a Child an Allowance for Doing

question 117

Multiple Choice

A parent that pays a child an allowance for doing chores is providing a(n) ________ incentive.

• A) positive
• B) negative
• C) neutral
• D) complementary
• E) unintended

---

Definitions:

Cost-volume-profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Mix

The relative distribution of sales among the various products available for sale.

Fixed and Variable Costs

Costs that remain constant regardless of the level of production or business activity (fixed) and costs that vary in direct proportion to changes in activity (variable).

Cost-volume-profit Analysis

A financial approach that identifies how variations in expenses and production volume impact a business's operating profit and total earnings.