Which of the Following Statements Best Explains the Primacy Effect

question 150

Multiple Choice

Which of the following statements best explains the primacy effect?

• A)It occurs because the first few items in a list receive more elaborate processing.
• B)It occurs because the first few items in a list drop out of working memory before being encoded.
• C)It occurs because the last few items in a list are never encoded.
• D)It occurs because the last few items in a list are more likely to be encoded successfully into long-term memory.

Understand the financial planning around cash balances and the need for financing.

Recognize the importance of activity-based budgeting for resource planning.

Understand the distinctions between manufacturing and merchandising budget needs.

Understand the concept of operating leverage and its relevance to the cost structure.

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Definitions:

Specific Identification

An inventory costing method where each item in inventory is individually tracked and valued at its specific cost.

Inventory Costing

Inventory costing is the method used to assign costs to inventory, affecting how cost of goods sold and inventory values are calculated.

Gordon's Jewelers

A jewelry retailer known for selling a variety of jewelry items, often focusing on diamond and fine jewelry.

Periodic System

An accounting system where inventory is updated at specific periods rather than continuously, typically used for calculating cost of goods sold at the end of an accounting period.