DrVoorhies Tells His Elderly Patients to Try Brainteasers and Crossword

question 455

Multiple Choice

Dr.Voorhies tells his elderly patients to try brainteasers and crossword puzzles to help stave off memory decline.Dr.Washington,by contrast,encourages his elderly patients to maintain a routine of physical exercise to counter memory loss.How might you evaluate the advice of these two doctors considering empirical research?

• A) The advice of both doctors is probably good, but Dr. Voorhies's advice is better supported by research.
• B) The advice of both doctors is probably good, but Dr. Washington's advice is better supported by research.
• C) The advice of both doctors is equally good.
• D) Neither doctor's advice enjoys much in the way of research support.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used as a measure of performance in variance analysis.

Actual Rate

The actual interest rate or return that is earned or paid on an investment, loan, or other financial product.

Standard Rate

A predetermined or fixed cost rate that is applied uniformly across units, activities, or time for budgeting or billing purposes.

Unfavorable Cost Variance

A variance that occurs when the actual cost exceeds the standard cost.