If Ferdinand Prefers a Big Mac to a Whopper and a Whopper

question 94

Multiple Choice

If Ferdinand prefers a Big Mac to a Whopper and a Whopper to a hotdog,but is indifferent between a Big Mac and a Quarter Pounder he must

• A)prefer a Quarter Pounder to a hotdog.
• B)prefer a Whopper to a Quarter Pounder.
• C)be indifferent between a Quarter Pounder and a Whopper.
• D)be indifferent between a Whopper and a hotdog.

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Definitions:

Support Departments

Units within an organization that provide essential services or support to the production or primary departments but do not directly engage in the main activity of the business.

Proportional Usage

The allocation of resources, costs, or efforts in relation to the direct usage or benefit obtained from those resources.

Direct Method

A means of reporting cash flows from operating activities that presents specific cash inflows and outflows directly rather than using the indirect method adjustments.

Reciprocal Services Method

An accounting method used to allocate costs between departments of an organization that provide services to each other.