As a Beginning Driver, Xaviera Had to Think Consciously About

question 165

Multiple Choice

As a beginning driver, Xaviera had to think consciously about the process as she negotiated traffic; now, however, driving has become second nature for her. Whereas driving initially demanded ________ processing, it now reflects _______ processing.

• A) implicit; explicit
• B) automatic; controlled
• C) controlled; automatic
• D) explicit; implicit

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Definitions:

Activity Level

A measure in cost accounting that identifies the extent to which cost drivers affect the cost of producing goods or services.

Materials Price Variance

The difference between the actual cost of direct materials and the expected cost, based on standard price and actual quantity purchased.

Materials Purchased

The total value of raw materials bought by a company for use in production during a specific time period.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, reflecting how efficiently labor resources are used.