Which Statement About Heuristics Is Correct

question 49

Multiple Choice

Which statement about heuristics is correct?

• A) The availability heuristic occurs when people use information from memory as a basis for assessing a situation or event.
• B) The representativeness heuristic occurs when people assess the likelihood of something occurring based on its similarity to some stereotyped set of occurrences.
• C) The anchoring and adjustment heuristic involves making decisions based on alterations to a previously existing value or starting point.
• D) None of the options listed
• E) All of the options listed

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Definitions:

Weighted-Average Method

An approach to assess the cost of sold goods and concluding inventory by leveraging the average price of every unit available for purchase.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.

Conversion Costs

The combined total of direct labor costs and manufacturing overhead expenses, indicating the expenses required to transform raw materials into completed products.

Equivalent Units

A concept used in cost accounting to express the amount of work done by complete and incomplete units in terms of fully completed units.