The Judgment Bias That Describes the Tendency to Recall and Use

question 123

Multiple Choice

The judgment bias that describes the tendency to recall and use information easily retrieved from memory is

• A) The representativeness heuristic.
• B) The anchoring and adjustment heuristic.
• C) The availability heuristic.
• D) The framing effect.

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Definitions:

Net Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profitability from its operations.

Variable Costing

A costing method that includes only variable production costs in product costs, treating fixed costs as period expenses.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Unit Sales

The total number of individual items or units sold by a company in a specific period.