"MrWalsh Has the Reputation of Being an Easy Instructor Who

question 27

Multiple Choice

"Mr.Walsh has the reputation of being an easy instructor who seems to hand out A's in class.Therefore, I can count on getting at least an A in his class this semester." This statement is an example of:

• A)deductive reasoning.
• B)inductive reasoning.
• C)unwarranted assumption.
• D)sweeping generalization.

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Definitions:

Standard Costs

Predetermined costs assigned to goods and services, used as targets for performance evaluation.

Actual Costs

The real costs incurred in the production of goods or provision of services, as opposed to estimated or standard costs.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to control labor costs.