The Representativeness Heuristic Bases a Decision on Similarities Between a Situation

question 14

True/False

The representativeness heuristic bases a decision on similarities between a situation at hand and stereotypes of similar occurrences.

---

Definitions:

Direct Labor

Labor that is directly involved in the creation or production of goods, distinguishable from indirect labor such as administrative work.

Raw Material

The basic material from which a product is made, often used in manufacturing and production processes.

Labor Efficiency Variance

The difference between the actual hours of labor worked and the expected (or standard) hours, multiplied by the standard hourly labor rate.

Direct Labor

The cost of wage-earning employees who are directly involved in the production of goods or services, such as assembly line workers.