Over- or Underrating Someone Due to a Comparison with Someone

question 19

Multiple Choice

Over- or underrating someone due to a comparison with someone else is called the ________ effect.

• A) contrast
• B) regency
• C) halo
• D) horns

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Definitions:

Allocation Base

A measure or statistic used to distribute indirect costs to different products, services, or business units.

Labor Intensive

A process or industry that requires a large amount of labor to produce its goods or services, often resulting in higher labor costs.

Machine Intensive

A production process that heavily relies on machinery and equipment rather than manual labor for manufacturing goods or services.

Predetermined Overhead Rates

Rates used to apply manufacturing overhead to products that are calculated in advance based on estimated costs and activity levels.