Bbb auto club provides emergency road service and other services to its members. bbb auto club charges a higher membership fee to new members than it charges to members who are renewing their membership. when asked to explain this pricing policy, the auto club president noted, "new members often sign-up prior to taking a long road trip, so we have to charge more as first-year members have higher service utilization rates." a similar phenomenon observed in insurance markets is called

a. attitudinal hazard.
b. adverse selection.
c. risk aversion.
d. moral hazard.

An office manager is concerned with declining productivity. despite the fact that she regularly monitors her clerical staff four times each day—at 9: 00 am, 11: 00 am, 1: 00 pm, and again at 3: 00 pm—office productivity has declined 30 percent since she assumed the helm one year ago. would you recommend that the office manager invest more time monitoring the productivity of her clerical staff? explain.

Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.

Taking commercial paper means the holder acts honestly