The Tendency to Hang on to Losers and Sell Winners

question 67

Multiple Choice

The tendency to hang on to losers and sell winners is known as the:

• A)cascade effect.
• B)disposition effect.
• C)overconfidence bias.
• D)systematic behavior bias.

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Definitions:

Materials Quantity Variance

The contrast between the quantity of materials actually used and the quantity that was projected, with this difference being multiplied by the standard price per unit.

Materials Price Variance

The variance between the real expense of materials utilized in production and the predetermined standard cost of those materials.

Raw Materials Inventory

The stock of basic materials and components that are to be used in the production or manufacturing of goods.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost, often analyzed in cost accounting.