The Rule of Thumb According to Which People Are More

question 100

Multiple Choice

The rule of thumb according to which people are more likely to assume something belongs to a given category if it shares many characteristics with the stereotypical members of that category is the:

• A)adjustment heuristic.
• B)representative heuristic.
• C)anchoring heuristic.
• D)availability heuristic.

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Definitions:

Variable Costing

A financial tracking method that considers just the variable operating costs (direct materials, direct labor, and variable manufacturing overhead) in the pricing of merchandise.

Unit Product Cost

The overall expense incurred to manufacture a single item, encompassing direct materials, direct labor, and overhead costs.

Absorption Costing

Absorption costing is an accounting method that includes all of the manufacturing costs (direct materials, direct labor, and overhead) in the cost of a product.

Variable Costing

An accounting method that only considers variable costs in the cost of goods sold and is used in internal financial analysis.