When Asked to Introspect About Their Reasons for Making a Particular

question 38

Multiple Choice

When asked to introspect about their reasons for making a particular choice, participants

• A) sometimes offer an explanation with great confidence even though the explanation names factors that they know to be irrelevant and leaves out factors that they know to be crucial.
• B) can usually specify their reasons and can also report on the processes used for selecting the reasons.
• C) often have no idea about their reasons, but if they are able to report their reasons, they are likely to be correct.
• D) report their reasons in general terms but do so with little confidence.

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Definitions:

Variable Manufacturing Cost

This is a subset of variable costs, referring specifically to costs that fluctuate with manufacturing output, such as raw materials and direct labor costs.

Fixed Manufacturing Cost

Costs that do not fluctuate with the volume of production, such as rent, salaries, and maintenance.

Incremental Analysis

Incremental Analysis is a decision-making tool used to compare the additional costs and benefits of one option over another, ignoring costs and benefits that are unchanged between options.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.