Which of the Following Statements Is True of Heuristics

question 162

Multiple Choice

Which of the following statements is true of heuristics?

• A) Heuristics are both impractical and cumbersome.
• B) Heuristics require the use of intuition.
• C) Heuristics are similar to trial-and-error problem solving.
• D) Heuristics do not guarantee the correct solution.

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Definitions:

Standard Cost

A predetermined cost of manufacturing an item, including direct materials, labor, and overheads, used for budgeting and performance evaluation.

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.

Efficiency Variances

Variances that occur when the actual performance deviates from the expected standards, often analyzed in terms of time, cost, and materials.

Budget Variance

The difference between budgeted figures for revenue and expenditure, and the actual amounts realized.