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Representativeness heuristics is a natural tendency to pay less attention to whether something resembles something else than on more precise statistics about its probability.
Administrative Expense
Costs related to the general operation of a business that are not directly tied to production, including salaries of non-production staff, office supplies, and utilities.
Indirect Material Cost
Indirect material costs are costs related to materials that do not directly become part of the final product but are necessary for the manufacturing process.
Direct Material Cost
The expense of basic materials and parts directly utilized in manufacturing a product.
Period Cost
Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.
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