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Clint Was Used to Eating in One Particular Fast-Food Chain

question 190

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Clint was used to eating in one particular fast-food chain near his house.When he moved away from home, there was a different chain in his new neighborhood.Even though he had never eaten in this particular chain, Clint walked up to the counter, ordered his food, paid, and waited at the counter for his food.The fact that Clint "remembered" what to do, based on the similarities between this fast-food outlet and other fast-food outlets he had frequented in the past, most clearly illustrates the concept of:


Definitions:

Standard

A benchmark or a set level of performance or achievement that is established for a process or product.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated, based on the efficiency of operations.

Supplies Cost

Supplies cost refers to the expense incurred in purchasing office or production supplies that are necessary for day-to-day operations.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with production volume, such as utilities and raw materials, which do not remain constant as production levels change.

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