Which of the Following Students Provides the Most Accurate Summary

question 65

Multiple Choice

Which of the following students provides the most accurate summary of Type 1 and Type 2 processing,in connection with reasoning and decision making?

• A)Rika: "In Type 1 processing,we make very careful judgments; in Type 2 processing,we don't really care about our accuracy."
• B)Joe: "Adults consistently use Type 1 processing; children and adolescents consistently use Type 2 processing."
• C)Heather: "Type 1 processing is used for reasoning; Type 2 processing is used for decision making."
• D)Frank: "Type 1 processing doesn't require much conscious attention; Type 2 processing is slow,and we need to pay close attention."

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Definitions:

Standard Labor Cost

A predetermined cost of the labor time required to produce a unit of output, factoring in wages, benefits, and other labor-related costs.

Sales Volume Variance

The difference between the actual units sold and the budgeted units sold, multiplied by the standard selling price per unit.

Average Price

The mean price of a good or service calculated by dividing the sum of the prices of all the items by the number of items.

Overhead Volume Variance

Overhead volume variance is the difference between the budgeted overhead at standard production volumes and the actual overhead incurred due to variance in production volume.