Students Were Asked to Figure Out the Rule Used to Devise

question 12

Multiple Choice

Students were asked to figure out the rule used to devise the three-number sequence 2-4-6. After generating sets of three numbers to learn whether their sets met the rule, they typically convinced themselves of the wrong rule. Their errors best illustrate the impact of

• A) intuition.
• B) the availability heuristic.
• C) framing.
• D) confirmation bias.

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Definitions:

Adjusted Cost of Goods Sold

The cost of goods sold after adjustments for changes in inventory levels, returns, or allowances have been made.

Cost of Goods Available

The cost of goods available represents the total cost of inventory available for sale during a certain period, calculated as beginning inventory plus purchases minus ending inventory.

Schedule of Cost

A detailed report showing the breakdown of the cost components including materials, labor, and overhead for a project or production process.

Underapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs exceed the applied (or allocated) manufacturing overhead costs.