The Tendency to Be So Fixed in Our Perception of the Proper

question 120

Multiple Choice

The tendency to be so fixed in our perception of the proper function of an object or procedure that we are blinded to new ways of using it is called:

• A) intelligence.
• B) creativity.
• C) divergent thinking.
• D) functional fixedness.

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Definitions:

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.