A Cognitive Bias Resulting from the Tendency to Generalize Inappropriately

question 73

Multiple Choice

A cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode is known as:

• A)recency effect
• B)escalating commitment
• C)representative bias
• D)systematic errors
• E)prior hypothesis bias

Understand the unique characteristics and functions of different types of checks and negotiable instruments under the UCC.

Identify and differentiate the roles and responsibilities of banks in the check collection process.

Comprehend the legal framework governing electronic fund transfers and digital transactions, including the application of Regulation E and the Electronic Fund Transfer Act.

Recognize the procedural aspects and legal implications of postdating checks, stop payment orders, and check certification under the UCC.

---

Definitions:

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are less than the actual costs incurred.

Overapplied Manufacturing Overhead

A condition where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.

Cost of Goods Sold

Cost of goods sold represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or jobs, computed before the costs are incurred, based on estimated rather than actual costs.