Dinesh Takes a Quick Call from His Wife and Then

question 2

Multiple Choice

Dinesh takes a quick call from his wife and then returns to a conversation with his coworker. His wife asked him to pick up six items at the grocery store on his way home from work, and while walking to his car, he realizes that he can remember only the first three items. This illustrates the ____.

• A)spreading activation model
• B)primacy effect
• C)recency effect
• D)maintenance model

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Definitions:

Direct Labor Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor.

Controllable Variance

The difference between actual and expected amounts that can be directly managed or controlled by responsible individuals.

Fixed Overhead Costs

Indirect expenses of running a business that are not affected by changes in the volume of goods or services produced, such as rent, salaries, and insurance.