In the Elevator Riddle Which Asks Why Otto Rides the Elevator

question 64

Multiple Choice

In the elevator riddle which asks why Otto rides the elevator all the way up to the 15th floor on rainy days, but only to the 10th floor when it is not raining, one had to use

• A)intuitive reasoning.
• B)functional fixedness.
• C)logical reasoning.
• D)a mental set.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, used to control and manage costs.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard hourly labor rate.

Materials Price Variance

The discrepancy between the real expense of direct materials employed in manufacturing and the anticipated standard expense for those materials.

Materials Quantity Variance

The difference between the budgeted and actual quantities of materials used in production, affecting cost management.