The Way a Question Is Stated Before Problem Solving Begins

question 45

Multiple Choice

The way a question is stated before problem solving begins can affect decision making and is known as

• A)the representativeness heuristic.
• B)framing.
• C)incubation.
• D)defining the base rate.

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses like wages, depreciation, and cost of goods sold.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed overhead as a period expense.

Activity Base

A measure used to assign costs in activity-based costing, reflecting the volume of activity that drives costs.

Service Firm

A business that provides intangible products or services to consumers or other businesses.