Variable Costs Are Always Direct Costs

question 107

True/False

Variable costs are always direct costs.

---

Definitions:

Bounded-Rationality Model

This model suggests that individuals make decisions based on limited information and cognitive processing abilities, leading to satisficing rather than optimal outcomes.

Mental Blinders

Cognitive limitations that prevent individuals from seeing alternatives or understanding different perspectives, akin to tunnel vision.

Lone “Geniuses”

Describes individuals who are perceived to have exceptional intellectual or creative power and who work and innovate independently, often contributing significantly to their field.

Evidence-Based Management

The practice of making managerial and organizational decisions based on the best available evidence from scientific and business resources, to improve outcomes.