One of the Ways That Functional-Based Accounting Systems May Inadvertently

question 8

Multiple Choice

One of the ways that functional-based accounting systems may inadvertently induce managers to act against the company's best interest is to

• A) pass along defective parts to avoid an unfavorable materials usage variance
• B) produce less units than demanded to avoid a labour efficiency variance
• C) acquire materials in large quantities to avoid a favorable materials price variance
• D) use more experienced workers to avoid a labour rate variance

---

Definitions:

Dispositional Attribution

The tendency to attribute someone’s behavior to their internal characteristics or personality rather than to external factors.

Self-Serving Bias

A cognitive bias that involves taking personal credit for success while blaming external factors for failures.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Actor-Observer Effect

The tendency to attribute one's own actions to external factors, while attributing others' actions to their personality.