What Is Meant by "Hindsight Bias"?​

question 23

Multiple Choice

What is meant by "hindsight bias"?​

• A)Expressing too much confidence in our predictions of future events
• B)​Expressing too little confidence in our predictions of future events
• C)​Changing our memories of the past to fit with later events
• D)​Forgetting our memories of the moments that have shaped our lives

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Definitions:

Standard Costing System

A cost accounting method that assigns predetermined costs to production activities, facilitating variance analysis to control costs.

Standard Overhead Rate

The predetermined rate charged for overhead expenses in a standard costing system, based on expected costs and activity levels.

Flexible Overhead Rate

An overhead allocation rate that adjusts for variations in actual activity levels, as opposed to being fixed or static.

Volume Variance

The difference between the expected volume of sales or production and the actual volume, often leading to variations in income or expenses.