Opie Corporation Reported the Following Operating Costs and Environmental Quality

question 69

Multiple Choice

Opie Corporation reported the following operating costs and environmental quality costs for the past four years.Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program.
- What is the change in environmental costs from 2011 to 2012?

• A) $37,000
• B) $41,000
• C) $12,000
• D) $750,000

---

Definitions:

Representativeness Heuristic

A mental shortcut that involves judging the likelihood of an event by comparing it to an existing prototype in our minds.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic or decision.

Compensatory Decision Modeling

This is an approach in decision-making research that assumes individuals compensate for weaker aspects of one option with stronger aspects of another when making complex choices.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one thing resembles another.