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After Jake set the table, his mother asked him whether he had put napkins on the table. Even though he hadn't, Jake replied "yes" and believed he had because he knew that putting napkins on the table was part of what he always did when he set the table. Jake's distorted memory is best explained as
Unfavorable Variance
The difference between actual costs and standard or budgeted costs when actual costs are higher, indicating lower profitability.
Actual Costs
The real, specific expenses incurred or required to perform an operation, produce an item, or offer a service.
Standard Costs
Predetermined costs to manufacture a single unit or a number of units during a specific period under current or anticipated operating conditions.
Total Materials Variance
The difference between the actual cost of materials used in production and the expected (or standard) cost, used to evaluate cost control.
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