Our Tendency to Judge the Likelihood of an Event on the Basis

question 116

Multiple Choice

Our tendency to judge the likelihood of an event on the basis of how readily we can remember instances of its occurrence is called

• A) framing.
• B) confirmation bias.
• C) belief perseverance.
• D) the availability heuristic.

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Definitions:

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.

Raw Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the actual quantity used.

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity, which can indicate inefficiencies or savings in material usage.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated amount, with this difference being multiplied by the per unit standard cost.