Yusuf Is Meeting a Blind Date on a Rickety Suspension

question 341

Multiple Choice

Yusuf is meeting a blind date on a rickety suspension bridge above a large canyon with rapids below.How is he likely to rate her attractiveness compared to if he was meeting her in a park?

• A) He is likely to find her more sexually attractive on the bridge.
• B) He is likely to find her less sexually attractive on the bridge.
• C) He is likely to rate her the same level of attractiveness in both settings.
• D) He is likely to ignore her initially and focus on the bridge but then her attractiveness will grow on him gradually as he gets used to the bridge.

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Definitions:

Common Cost

A cost that is incurred to support a number of cost objects but that cannot be traced to them individually. For example, the wage cost of the pilot of a 747 airliner is a common cost of all of the passengers on the aircraft. Without the pilot, there would be no flight and no passengers. But no part of the pilot’s wage is caused by any one passenger taking the flight.

Variable Costing

A costing method that includes only variable production costs (costs that change with the level of output) in product costs, excluding fixed manufacturing overhead.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's operating profit after subtracting operating expenses but before interest and taxes.