How Can the Power Differential Heuristic Result in a Decision

question 22

Essay

How can the Power Differential heuristic result in a decision that may not be ethical?

Assess the financial viability of accepting special orders or further processing decisions.

Apply the total cost and sales price methods to pricing decisions.

Understand the concept of incremental analysis and its application in making business decisions.

Analyze various cost components (direct materials, direct labor, overhead) in manufacturing decisions.

---

Definitions:

Specific Demands

Explicit, defined requests or conditions put forward by one party in a negotiation or conflict resolution context.

Cognitive Resolution

Involves the process of solving problems through thinking, reasoning, and applying information effectively.

Destructive Conflict Processes

Behaviors and tactics in a conflict that escalate tensions, harm relationships, and inhibit mutual understanding or resolution.

Emotions

Feelings or affective states that can influence individuals' thoughts and behaviors, particularly in decision-making processes.