Chapter 4 Discussed Research on the Recency Effect

question 12

Multiple Choice

Chapter 4 discussed research on the recency effect. How is this research related to short-term memory?

• A) The final words in a list are recalled accurately because they are still in short-term memory.
• B) There is a clear-cut difference between pattern perception and short-term memory.
• C) The material can pass directly into long-term memory, without first entering short-term memory.
• D) The recency effect showed that the capacity of short-term memory is extremely large.

Calculate unit product costs under activity-based costing.

Understand the purpose of overhead allocation and its implications on product costing.

Understand the principles and application of activity-based costing (ABC).

Calculate overhead rates and apply them to determine product costs under ABC.

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Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced, representing the per unit cost of production.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output produced; it represents the variable cost per unit of output.

Optimal Plant Size

The scale of production at which a firm can produce goods at the lowest average cost, maximizing efficiency.