Monica Uses the Availability Heuristic Much More Frequently Than Does

question 90

Multiple Choice

Monica uses the availability heuristic much more frequently than does Ross. Therefore, Monica is more likely than Ross to

• A) rely heavily on situational cues that are available in the stream of behavior she observes.
• B) perceive and utilize the available consensus information.
• C) make judgments that are more resistant to the false-consensus effect.
• D) estimate the likelihood of an event in terms of the ease with which instances of it come to mind.

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Definitions:

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overheads - in the cost of a unit of product.

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.

Absorption Costing

A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs.