Which of the Following Is an Example of the Availability

question 27

Multiple Choice

Which of the following is an example of the availability heuristic?

• A)Thinking that you won't get lung cancer if you smoke because you know many smokers and none of them have lung cancer.
• B)Deciding not to buy a certain brand of computer because you know one person who had a bad experience with that brand.
• C)Believing that homicides occur more frequently than deaths due to diabetes because homicides get more attention by the media when they occur.
• D)All of the above are examples of the availability heuristic.

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Definitions:

Administrative Expenses

Administrative Expenses are overhead costs not directly tied to a specific function such as manufacturing, production, or sales, and can include salaries, rent, and office supplies.

Budgeting

A financial planning process whereby individuals or entities estimate their expected incomes and expenditures over a defined period.

Activity Variance

Activity variance calculates the difference between the planned quantity of activity and the actual quantity, analyzing the impact on costs and operational efficiency.

Direct Labor

The wages and benefits paid for the labor directly involved in the production of goods or services.