A Is a Shift in Judgment Away from a Contextual

question 55

Multiple Choice

A is a shift in judgment away from a contextual reference point.

• A)assimilation effect
• B)framing effect
• C)accommodation effect
• D)contrast effect
• E)availability heuristic

---

Definitions:

Equivalent Units

A concept in costing used to convert partially completed goods into an equivalent number of fully completed units for inventory valuation.

First-In, First-Out Method

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the most recently purchased items in inventory.

Conversion Cost

The combined cost of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Equivalent Units

Definition: A concept in cost accounting, equivalent units measure the amount of work done on partially finished goods, expressed in terms of fully completed units.