What Is the Behavior That Results When a Decision Maker

question 9

Multiple Choice

What is the behavior that results when a decision maker makes a decision and continues to support that decision,even when it appears to be wrong?

• A) Escalation of commitment
• B) Legitimate power
• C) Risk propensity
• D) Path-glory
• E) Intuition

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, changing with the level of activity but also containing a static element.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the amount of sales that can decline before a business incurs a loss.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activity, such as rent and salaries.

Absorption Costing

A financial accounting technique that integrates all costs incurred from manufacturing, including direct materials, direct labor, along with both fixed and variable overhead costs, into the total cost of a product.