People Relying on This Shortcut in Thinking Make Judgments on the Basis

question 16

Multiple Choice

People relying on this shortcut in thinking make judgments on the basis of how easily they are able to call to mind what they perceive as relevant instances of a phenomenon.

• A) availability heuristic
• B) functional fixedness
• C) mental set
• D) representative heuristic

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Definitions:

Actual Costs

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

Time Variance

This refers to the difference between the expected time to complete a task and the actual time taken.

Actual Direct Labor Hours

The real number of labor hours spent by workers directly involved in the production of goods or services.

Standard Hours

The prescribed amount of time that work is expected to take under normal conditions, often used for planning and efficiency analysis.