Why Do We Use Schemas

question 95

Multiple Choice

Why do we use schemas?

• A) Humans are born with schemas.
• B) Schemas are taught to us in our early childhood.
• C) Without schemas, the world would seem inexplicable and confusing.
• D) Schemas ensure that we interpret the world accurately.

---

Definitions:

Overapplied Overhead

Occurs when the overhead allocated to products or services is more than the actual overhead costs incurred.

Profit Margin

The percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a product or service.

ABC Limitations

Challenges and constraints of Activity-Based Costing, such as its complexity and the potential for inaccurate cost allocation.

Facility Level Costs

Costs that are incurred to maintain the operation of a facility as a whole, rather than specific products or services, such as rent, utilities, and property taxes.