The Following Data Pertains to Activity and Maintenance Costs for Two

question 110

Multiple Choice

The following data pertains to activity and maintenance costs for two recent years: $\begin{array}{lrr} & \text { Year 2 } & \text { Year 1 } \\\text { Activity level in units} & 12,000 & 8,000 \\\text { Maintenance cost } & \$ 15,000 & \$ 12,000\end{array}$ Using the high-low method, the cost formula for maintenance would be:

• A)$1.50 per unit
• B)$1.25 per unit
• C)$3,000 plus $1.50 per unit
• D)$6,000 plus $0.75 per unit

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Definitions:

Attribution Theory

A social psychology theory which explains how individuals pinpoint the causes of their own and others' behaviors.

Asch Procedure

A method used in social psychology to study conformity, where participants are asked to match line lengths in a group setting, revealing the influence of peer pressure.

Conformity

The act or behavior of aligning one's beliefs, attitudes, and actions to those of a group or societal norms, often to fit in or be accepted by others.

Social Loafing

A phenomenon where the effort of individuals towards a common goal declines when they operate in a group versus solo efforts.